The Alabama state legislature failed to renew the state’s historic tax credit program before the end of the 2016 legislative session. HB 62, the seven year extension bill, had tremendous support and passed in the Alabama House but was held up in the Alabama Senate by Senate President Pro Tem Del Marsh due to budget concerns.
While preexisting projects are unaffected, it’s currently impossible to start a new project (as the last day owners could submit applications and plans was May 15th). Advocates will be fighting to have the program extended in 2017.
February 3, 2016 — For every $1 of the Alabama Historic Rehabilitation Tax Credit that is allocated, $3.90 is returned to state and local tax collections over a 20-year period. This was among the conclusions drawn in the Alabama Historic Rehabilitation Tax Credit Program Comprehensive Economic Impact Study, which was was prepared by Novogradac & Company, LLP.
The report reveals that the Alabama Historic Rehabilitation Tax Credit is responsible for over $384 million in private investment in the state and has created 2,133 direct construction jobs and 1,373 operational-phase jobs, which are expected to grow overtime. The success tax credit program is under threat. Unless legislation is passed to extend the program it will end in 2016.
