Alabama Ruling Allows State HTCs to Be Claimed in Year After Placed in Service

Friday, December 20, 2019 - 9:30am

An investor intending to purchase Alabama state historic tax credits (HTCs) in 2019 for a property that generated the credits in 2018 was allowed to claim the credits in 2019, after requesting and receiving a revenue ruling from the Alabama Department of Revenue.  The Department of Revenue specified that Revenue Ruling 2019-001 was dependent on the seller filing the HTC application and rehabilitation plans on or before May 16, 2016, after which state law changed to require credits be used in the year the property was placed in service. The ruling also said that an allocation of the HTCs among partners is not considered a transfer. Alabama law allows only one transfer of state HTCs.