|Committee: Finance and Taxation Education||Sponsor: Gaston|
|Analyst: Jessica Perez||Date: 04/02/2021|
House Bill 281 as passed the House of Representatives would extend the existing Historic Rehabilitation Tax Credit Program that would have otherwise expired at the end of calendar year 2022 through calendar year 2027, and clarifies that a transferee is entitled to claim a refund for the tax credit. This bill could reduce receipts to the Education Trust Fund (ETF) by up to $20 million annually beginning in fiscal year 2024 through fiscal year 2028, by providing refundable income tax credits to taxpayers that make qualified rehabilitation expenditures to certified historic structures used for commercial or business purposes in Alabama.
The bill would decrease sales tax receipts to the ETF to cover the annual cost of the income tax credits for the applicable tax year from sales tax receipts through the Historic Preservation Income Tax Credit Account within the Education Trust Fund.
According to information reported by the Historical Commission, a total of 95 project applications received credit reservations for tax years 2018, 2019, and 2020, with an additional 42 projects on a waiting list for 2021 and 2022 credit consideration. Of the $60 million in credits reserved to date, less than 20 taxpayers have claimed a total of approximately $6.76 million in credits.
|Arthur Orr, Chairperson|
Finance and Taxation Education