State historic tax credit programs

Alabama Historic Rehabilitation Tax Credit Program

Program overview:

In addition to the federal program, the Alabama Historic Rehabilitation Tax Credit offers a 25 percent refundable credit for the certified rehabilitation of eligible income producing and residential properties* older than 60 years old. Properties must be listed in or eligible for the National Register of Historic Places (NRHP).

*Please note: after December 31, 2022, any property occupied by an owner and used exclusively as a primary or secondary residence will no longer be eligible for a state historic tax credit.

Annual cap:
$20 million

Project cap:
$5 million per project (commercial)
$50,000 per project (residential)*

Program details:

  • 40% ($8 million) of credits reserved for counties with 175,000 or fewer people (for the first six months of the year).
  • Unused portion of county set-aside goes back into main pool of funding.
  • Excess tax credits will be carried forward each year.
  • Min. expenditures: 50% of purchase price or $25,000 whichever is greater.
  • Refundable.
  • Transaction cap: $50,000 for residential homes.
  • Applications will be reviewed by Historic Tax Credit Evaluating Committee.
  • Eligible costs must exceed 50 percent of the owner’s original purchase price or $25,000, whichever is greater.
  • Owners claim the tax credit in the tax year in which the building is placed in service. The credit is transferable only one time. Any unused portion of the tax credit is refundable.
  • Those receiving a reservation have up to 5 years to complete the project and take the tax credit.
  • Any nonprofit receive receiving a state HTC must file a state tax return for the year the project is placed in service.
  • Any tax credit transferred must be valued at 85 percent or greater of the present value.
  • Sunset date: Dec 31, 2022.

Who can use the credit?

The credit is available to private homeowners and owners of commercial properties and is transferable once by certificate.

MHA New Orleans
New Orleans, LA

201 St. Charles Avenue
Suite 2305
New Orleans, LA 70170

(504) 708 2734 Contact our office