Alabama Amends Tax Refund Rules in Transfer of HTCs

Monday, October 18, 2021 - 10:45am

An Alabama Department of Revenue administrative rule took effect Oct. 15 amending the state’s historic tax credit (HTC) to allow the recipient of an HTC transfer to claim a refund for the difference if their taxes owed are less than the tax credit in the year the property is placed in service. The change to Rule 810-3-137-.02 also strikes a provision stipulating that once a credit is transferred, it is nonrefundable and cannot be carried forward.

Listen to a recent Tax Credit Tuesday podcast with Michael Novogradac and Novogradac partner Tom Boccia, CPA, to learn how to better maximize HTC equity.