The bill HB253 amends several sections of the Code of Alabama 1975 to enhance the framework for tax credits related to the rehabilitation of certified historic structures. Notably, it raises the age requirement for a structure to qualify as a "certified historic structure" from 60 to 75 years for applications submitted after June 1, 2023. The bill also introduces provisions for additional rehabilitation credit allocations, ties credits to the year of reservation allocation, and updates the membership criteria and evaluation factors for the Historic Tax Credit Evaluating Committee. Furthermore, it specifies that tax credits can only be claimed in the taxable year when the rehabilitation is placed in service and establishes a separate account within the Education Trust Fund for managing these credits.

Additionally, the bill modifies the process for claiming tax credits, particularly for partnerships and other entities, by requiring claims at the entity level and introducing a transfer process for credits. It sets a cap on the total amount of tax credits that can be reserved, increasing the limit to $40 million per year for tax years 2023 through 2027, while maintaining an overall cap of $200 million for the period from May 25, 2017, through December 31, 2027. The bill also enhances the evaluation criteria for the Historic Tax Credit Evaluating Committee, requiring consideration of factors such as community value, return on investment, and job creation. The act is designed to streamline the tax credit process and improve the allocation of credits for rehabilitation projects in Alabama, with immediate effect upon passage and approval by the Governor.

Statutes affected:
Introduced: 40-9F-31, 40-9F-33, 40-9F-38
Engrossed: 40-9F-31, 40-9F-33, 40-9F-38
Enrolled: 40-9F-31, 40-9F-33, 40-9F-38