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 the entire tax credit must be claimed in the taxable year when the certified rehabilitation is placed in service, and it establishes a separate account within the Education Trust Fund for the Historic Preservation Income Tax Credit. Additionally, the aggregate amount of tax credits that can be reserved by the commission is increased to $40 million per year for tax years 2023 through 2027, while maintaining a total cap of $200 million for the period from May 25, 2017, through December 31, 2027.

Furthermore, the bill outlines the process for transferring tax credits, stipulating that they can be transferred at a value of at least 85% of their present value and cannot be transferred again once transferred. It establishes the Historic Tax Credit Evaluating Committee, which will review and rank projects based on various criteria, including community value, return on investment, and job creation. The committee is also required to meet in various formats and must consider any additional tax credits or government grants the applicant plans to utilize. The act aims to enhance the framework for historic preservation tax credits while making technical revisions to align with current legal standards, deleting certain outdated language and inserting new provisions for clarity and detail in the allocation process.

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