Ala. Admin. Code r. 460-X-23-.03

Current through Register Vol. 42, No. 11, August 30, 2024

Section 460-X-23-.03 - Tax Credit

(1) A tax credit of twenty-five percent (25%) of qualified rehabilitation expenditures is available against any state tax due that is specified in the Act for the Certified Rehabilitation of Certified Historic Structures and Certified Historic Residential Structures. This credit is available for both income-producing buildings and owner-occupied residential buildings.

(2) A tax credit of ten percent (10%) of qualified rehabilitation expenditures is available against any state tax due that is specified in the Act for the Certified Rehabilitation of Qualified Non-historic Structure. This credit is available for non-residential income-producing buildings only.

(3) Rehabilitation of a Qualified Structure shall be substantial as defined by the term Substantial Rehabilitation contained in section 460-X-23-.02.

(4) The tax credit may be used by the Owner of the Certified Historic Structure, Certified Historic Residential Structure, or a Qualified Non-historic Structure.

(5) Eligible expenditures include reasonable expenses and costs expended in the Certified Rehabilitation of a Qualified Structure as defined by the term Qualified Rehabilitation Expenditures in section 460-X-23-.02. Eligible expenditures do not include: the cost of acquiring any interest in a Qualified Structure or its Property; any expenditure attributable to the enlargement of an existing building; and site work expenditures, including any landscaping, sidewalks, parking lots, paving, decks, outdoor lighting remote from the building, fencing, retaining walls, or similar expenditures because they are not considered made in connection with the rehabilitation of a Qualified Structure.

(6) The Applicant shall not be permitted to request the review of another property in the place of the property contained in the Application. All or any portion of the tax credits under this Act shall be transferable and assignable, subject to any notice and verification requirements to be determined by the Department, without the requirement of transferring any ownership interest in the qualified structure. However, once a credit is transferred, only the transferee or transferees may utilize such credit and the credit cannot be transferred again. The transferee or transferees of the tax credits may use the amount of tax credits transferred to offset any state tax due under Chapters 16 and 18 of Title 40.

(7) For the purpose of these regulations, dates of notification or issuance of any decisions, actions, requests for information, billing for fees, and other correspondence by the Commission shall be in writing and the date of the notification or issuance shall be stated. The notification or issuance is effective as of the stated date and not the date of receipt by the Applicant.

Ala. Admin. Code r. 460-X-23-.03

New Rule: Filed December 13, 2013; effective December 20, 2013.

Amended by Alabama Administrative Monthly Volume XXXII, Issue No. 12, September 30, 2014, eff. 10/8/2014.

Authors: Chloe Mercer, David Schneider, Jennifer Bailey

Statutory Authority: Act 2013-241; Act 2014-452