Alabama Increases Minimum Age for State HTC to 75 Years; Extends $20 Million Annual Statewide Cap

Tuesday, June 20, 2023 - 8:30AM

Legislation in Alabama that took effect last week makes changes to the state historic tax credit (HTC), including increasing the minimum age for a historic structure to qualify to 75 years for credit applications submitted after June 1, 2023, and extending the $20 million annual statewide cap through 2027. H.B. 253 also allows the state HTC to be claimed in the year a credit reservation is allocated to a project, permits the Alabama Historical Commission to use up to an additional $5 million to reduce the backlog of qualified applicants and limits to $200 million to total credits that can be reserved from May 25, 2017, through Dec. 31, 2027.

The Novogradac Historic Rehabilitation Handbook provides an overview of the HTC and the intricacies of the incentive.

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