HB509 Summary

• Clarifies that historic rehabilitation tax credits are awarded on a calendar year basis rather than fiscal year basis.

• Removes all ownership change restrictions by eliminating the 50 percent ownership retention requirement and allowing unrestricted ownership transfers, including through foreclosure, deed in lieu of foreclosure, or bankruptcy.

• Allows tax credits to be freely transferred and assigned to any person or entity without requiring transfer of ownership interest in the qualified structure, with transferees able to further transfer credits until claimed on a tax return.

• Establishes transfer procedures including a $1,000 per transferee fee (capped at $10,000) and requires filing of transfer statements and written agreements with the Alabama Department of Revenue.

• Makes the act retroactively effective to May 15, 2013, except for transfer provisions which apply to tax periods beginning January 1, 2014 or later.