AL HB271

Establishes a state income tax credit in Alabama for rehabilitation, preservation, and development of certified historic structures located in downtown core areas, central business districts, or registered historic districts in Class 1, 2, or 3 municipalities.

Tax credit equals 25 percent of qualified rehabilitation expenditures for certified historic structures and 10 percent for pre-1936 non-historic structures, with maximum credits of $3,000,000 for income-producing properties and $50,000 for historic homes.

Requires Alabama Historical Commission certification of structures and rehabilitation plans before work begins, with commission reserving tax credit allocations within 120 days of application in order received.

Allows unused tax credits to be carried forward for up to 10 additional tax years and permits tax credits to be freely transferred and assigned.

Effective for taxable years beginning January 1, 2013, with aggregate credit caps of $25,000,000 for all income-producing properties and $5,000,000 for all historic homes in any tax year.