Alabama Historic Tax Credit

Alabama Historic Tax Credit

  • The entire tax credit may be claimed by the taxpayer in the taxable year in which the certifiedrehabilitation is placed in service.
  • The state portion of any tax credit against the tax imposed by Chapters 16 and 18 shall be equal to 25 percent of the qualified rehabilitation expenditures for certified historic structures, and shall be 10 percent of the qualified rehabilitation expenditures for qualified pre-1936 non-historic structures.
  • No tax credit claimed for any certified rehabilitation may exceed five million dollars ($5,000,000) for all allowable property types except a certified historic residential structure, and fifty thousand dollars ($50,000) for a certified historic residential structure.
  • May be carried forward for up to 10 additional tax years.
  • Recapture of any of the credit shall apply against the taxpayer who utilizes the credit, and any required adjustments to basis due to recapture, shall be governed by Section 50 of the Internal Revenue Code.