The bill HB452 Engrossed amends the Code of Alabama 1975 to extend the state income tax credit for the rehabilitation of qualified historic structures through 2032. Key changes include redefining "certified historic structure" to require properties to be at least 75 years old for applications submitted after June 1, 2023, and introducing definitions for "rural communities" and "urban communities" based on population size. The criteria for "substantial rehabilitation" expenditures are modified, with adjusted thresholds for tax years 2028 through 2032, differentiating between rural and urban properties. The Alabama Historical Commission is tasked with developing standards for substantial rehabilitation projects and ensuring that proposed uses of structures do not disqualify them from receiving tax credits.

Additionally, the bill establishes new tax credit percentages, with a 25% credit for tax years 2023 through 2027 and a 30% credit for rural projects from 2028 to 2032, while maintaining the 25% credit for urban projects. It creates a cap of $5 million on tax credits for certified rehabilitation and establishes the Historic Preservation Income Tax Credit Account within the Education Trust Fund. The total cap for tax credits is increased from $200 million to $300 million, with 40% reserved for projects in counties with populations under 175,000. The bill also clarifies application processes, deadlines, and the transferability of tax credits, ensuring effective utilization while maintaining oversight. The act is set to take effect on October 1, 2026.

Statutes affected:
Introduced: 40-9F-31, 40-9F-33, 40-9F-36, 40-9F-31, 40-9F-33, 40-9F-36
Engrossed: 40-9F-31, 40-9F-33, 40-9F-36, 40-9F-31, 40-9F-33, 40-9F-36