An Act Concerning The Use Of Historic Structures And Vacant Government Buildings For Economic Development.
Impact
The bill's implementation will likely lead to increased economic activity within communities as property owners are incentivized to invest in historic renovations. By offering tax credits equivalent to 25% of the qualified rehabilitation expenditures, capped at $2.7 million, the legislation is designed to encourage both private investment and the maintenance of affordable housing through the inclusion of stipulations around residential units. It also allows for phased projects, which adds flexibility for property owners managing the complexity of such undertakings. This approach could help revitalize areas by converting vacant government buildings into functional space.
Summary
SB01023, titled 'An Act Concerning The Use Of Historic Structures And Vacant Government Buildings For Economic Development,' seeks to promote the rehabilitation of certified historic and government buildings for economic purposes. The bill enables tax credits for owners undertaking substantial renovations of these properties, aiming to preserve historical integrity while encouraging economic growth within communities. This legislation reflects a commitment to ensuring that historic structures remain viable for modern use while contributing to the local and state economies.
Contention
One point of contention arising from the bill may involve the balance between historical preservation and economic development. While proponents argue that the incentives will lead to meaningful investment in neglected properties, opponents may raise concerns about potential overreach, particularly in cases where modern developments could compromise the integrity of historic sites. There may also be debates regarding how effectively these tax credits can be monitored and whether the provisions for including affordable housing units are strong enough to meet community needs.
An Act Authorizing And Adjusting Bonds Of The State And Concerning Provisions Related To State And Municipal Tax Administration, General Government And School Building Projects.
An Act Concerning The Department Of Economic And Community Development's Recommendations For Revisions To The Jobsct Program And The Commerce And Related Statutes.
An Act Concerning The Development Of Housing, Challenges To Certain Decisions Of Municipal Agencies, And The Conversion Of Vacant Nursing Homes Into Multifamily Housing.
An Act Concerning Municipal Approvals For Housing Development, Fines For Violations Of Local Ordinances, Regulation Of Short-term Rentals, Rental Assistance Program Administration, Notices Of Rent Increases And The Housing Environmental Improvement Revolving Loan And Grant Fund.
Amends sections of law relative to historic tax credits including increasing the maximum project credit and implementing requirements relative to following prevailing wage requirements..
Relating to taxation; to amend Sections 40-9F-31, 40-9F-33, and 40-9F-38, Code of Alabama 1975; to further provide certain age restrictions for structures to qualify for tax credits; to allow rehabilitation credits to be tied to the year in which the reservation is allocated; to provide for additional rehabilitation credit allocations; to further provide for the membership of the Historic Tax Credit Evaluating Committee and the factors considered by the committee; and to make nonsubstantive, technical revisions to update the existing code language to current style.
Relating to taxation; to amend Sections 40-9F-31, 40-9F-33, and 40-9F-38, Code of Alabama 1975, to increase the amount of tax credits that may be provided in a tax year; to allow rehabilitation credits to be tied to the year in which the reservation is allocated; to provide for additional rehabilitation credit allocations; to further provide for the membership of the Historic Tax Credit Evaluating Committee and the factors considered by the committee; and to make nonsubstantive, technical revisions to update the existing code language to current style.