The bill HB253 amends Sections 40-9F-31, 40-9F-33, and 40-9F-38 of the Code of Alabama 1975, primarily focusing on the qualifications and processes for tax credits related to certified historic structures. A significant change is the increase in the age requirement for a property to qualify as a "certified historic structure" from 60 to 75 years for applications submitted after June 1, 2023. The bill also introduces a provision that mandates tax credits to be claimed in the taxable year when the certified rehabilitation is placed in service, prohibiting claims prior to this year. Additionally, it establishes a separate account within the Education Trust Fund for the Historic Preservation Income Tax Credit and makes various technical revisions to align existing code language with current standards.

Furthermore, the bill modifies the allocation framework for historic tax credits, increasing the annual limit for tax years 2023 through 2027 to $40 million while maintaining a total cap of $200 million for the period from May 25, 2017, through December 31, 2027. It outlines the process for transferring tax credits, stipulating that they can be transferred at a value of at least 85% of their present value. The Historic Tax Credit Evaluating Committee is established to review and rank projects based on specific criteria, including community value and job creation. The bill also reserves 40% of annual tax credits for projects in smaller counties and allows the commission to allocate funds to reduce the backlog of qualified applications. Overall, the bill enhances the evaluation process and ensures a more structured approach to historic tax credit allocations.

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