HB436 Summary

• Establishes the Historic University Neighborhood Rehabilitation Act, creating an income tax credit equal to 25 percent of qualified rehabilitation expenditures for structures located within one-half mile of Alabama land-grant colleges or universities.

• Requires owners to submit applications and rehabilitation plans to the Alabama Historical Commission before beginning substantial rehabilitation work (defined as expenditures exceeding 50 percent of original purchase price or $25,000, whichever is greater).

• Caps aggregate tax credit reservations at $10 million per year for tax years 2019-2023, with an overall limit of $50 million through December 31, 2023; individual credits capped at $5 million.

• Allows credits to be transferred to other taxpayers at minimum 85 percent of present value; transferred credits can only be used once and cannot be transferred again.

• Establishes the Historic University Neighborhood Rehabilitation Tax Credit Evaluating Committee to review projects and rank them based on community value, return on investment, geographic distribution, and local support; applications accepted beginning November 1, 2018.