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HB62

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164932-1

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By Representatives Gaston and Faulkner

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RFD: Ways and Means Education

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First Read: 02-FEB-16

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164932-1:n:02/26/2015:FC/mfc LRS2015-756

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SYNOPSIS:

This bill would authorize a seven-year
extension of the tax credit against the tax

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liability of certain taxpayers for the substantial

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rehabilitation of qualified structures.

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A BILL

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TO BE ENTITLED

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AN ACT

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To amend Sections 40-9F-4 and 40-9F-7, Code of

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Alabama 1975, relating to the tax credit against the tax

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liability of certain taxpayers for the substantial

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rehabilitation of qualified structures; to authorize a

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seven-year extension of the tax credit.

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BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:

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Section 1. Sections 40-9F-4 and 40-9F-7, Code of
Alabama 1975, are amended to read as follows:

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"§40-9F-4.

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"(a) The state portion of any tax credit against the

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tax imposed by Chapters 16 and 18, for the taxable year in

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which the certified rehabilitation is placed in service, shall

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be equal to 25 percent of the qualified rehabilitation

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expenditures for certified historic structures, and shall be

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10 percent of the qualified rehabilitation expenditures for

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qualified pre-1936 non-historic structures. No tax credit

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claimed for any certified rehabilitation may exceed five

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million dollars ($5,000,000) for all allowable property types

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except a certified historic residential structure, and fifty

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thousand dollars ($50,000) for a certified historic

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residential structure.

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"(b) The entire tax credit may be claimed by the

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taxpayer in the taxable year in which the certified

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rehabilitation is placed in service. Where the taxes owed by

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the taxpayer are less than the tax credit, the taxpayer shall

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not be entitled to claim a refund for the difference, but any

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unused portion of the credit may be carried forward for up to

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10 additional tax years.

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"(c) For the calendar years 2013, 2014, and 2015,

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2016, 2017, 2018, 2019, 2020, 2021, and 2022, the aggregate

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amount of all tax credits that may be reserved in any one of

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such years by the commission upon certification of

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rehabilitation plans under subsection (c) of Section 40-9F-3

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shall not exceed twenty million dollars ($20,000,000) plus any

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amount of previous reservations of tax credits that were

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rescinded under subsection (c) of Section 40-9F-3 during the

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tax year.

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for any tax year is not requested and reserved, any unreserved

However, if all of the allowable tax credit amount

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tax credits may be utilized by the commission in awarding tax

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credits in subsequent years; provided, however, that in no

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event shall a total of more than sixty million dollars

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($60,000,000) be reserved by the commission during the period

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of May 15, 2013, through May 16, 2016. For purposes of this

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chapter, "tax year" shall mean the calendar year.

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"(d) Tax credits granted to a partnership, a limited

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liability company or multiple owners of a property shall be

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passed through to the partners, members, or owners (including

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any not-for-profit entity that is a partner, member, or owner)

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respectively pro rata or pursuant to an executed agreement

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among the partners, members, or owners documenting an

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alternate distribution method without regard to their sharing

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of other tax or economic attributes of the entity. The tax

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credit certificate shall contain a section to be completed by

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the owner that provides the percentage or amount of credit

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that will be allocated to each partner, member, or owner, and

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such completed certificate may be provided to the department

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to transfer all or any portion of the tax credits passed

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through to the partner, member, or owner in accordance with

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subsection (e).

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"(e) All or any portion of the tax credits under

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this section and Sections 40-9F-3 and 40-9F-5 shall be

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transferable and assignable, subject to any notice and

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verification requirements to be determined by the department,

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without the requirement of transferring any ownership interest

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in the qualified structure or any interest in the entity which

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owns the qualified structure. However, once a credit is

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transferred, only the transferee may utilize such credit and

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the credit cannot be transferred again. A transferee of the

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tax credits may use the amount of tax credits transferred to

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offset any state tax due under Chapters 16 and 18 of Title 40.

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The department shall promulgate a form transfer statement to

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be filed by the transferor with the department prior to the

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purported transfer of any credit issued under this chapter.

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The transfer statement form shall include the name and federal

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taxpayer identification number of the transferor and each

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transferee listed therein along with the amount of the tax

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credit to be transferred to each transferee listed on the

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form. The transfer statement form shall also contain such

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other information as the department may from time to time

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reasonably require. For each transfer, the transferor shall

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file (1) a completed transfer statement form; (2) a copy of

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the tax credit certificate issued by the commission

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documenting the amount of tax credits which the transferor

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intends to transfer; (3) a copy of the proposed written

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transfer agreement; and (4) a transfer fee payable to the

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department in the amount of one thousand dollars ($1,000) per

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transferee listed on the transfer statement form. The

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transferor shall file with the department a fully executed

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copy of the written transfer agreement with each transferee

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within 30 days after the completed transfer. Filing of the

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written transfer agreement with the department shall perfect

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such transfer with respect to such transferee. Within 30 days

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after the department's receipt of the fully executed written

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transfer agreement, the department shall issue a tax credit

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certificate to each transferee listed in such agreement in the

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amount of the tax credit so transferred. Such certificate

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shall be used by the transferee in claiming the tax credit

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pursuant to Section 40-9F-3(e) and (f). The department may

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promulgate such additional rules as are necessary to permit

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verification of the ownership of the tax credits but shall not

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promulgate any rules which unduly restrict or hinder the

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transfer of the tax credits.

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"§40-9F-7.

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"The tax credits authorized by this chapter for the

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substantial rehabilitation of qualified structures shall not

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be available to owners of qualified structures that submit an

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application and rehabilitation plan after May 15, 2016 2023.

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No action or inaction on the part of the Legislature shall

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reduce or suspend the tax credits authorized by this chapter

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in any past or future calendar year with respect to a

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qualified structure if the owner thereof submits an

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application and rehabilitation plan with the commission and

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the commission reserves an allocation for a tax credit on or

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prior to May 15, 2016 2023, even if the qualified structure is

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placed into service after May 15, 2016 2023, and shall not

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affect the owner of a qualified structure if the commission

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has reserved an allocation for a tax credit on or prior to May

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15, 2016 2023."

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Section 2. This act shall become effective

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immediately following its passage and approval by the

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Governor, or its otherwise becoming law and shall be effective

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for tax years beginning on or after January 1, 2016.

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