ALABAMA TAX INCENTIVES FOR HISTORIC PROPERTIES

The Alabama Historic Rehabilitation Tax Credit is a 25% refundable tax credit available for owners of income-producing properties who substantially rehabilitate historic properties that are listed in or eligible for the National Register of Historic Places and are 75 years old or older. The tax credit provides jobs, increases the tax base, and revitalizes existing buildings and infrastructure, while preserving and rehabilitating Alabama’s historic properties. The state tax credit application is a three-step process. The AHC provides technical assistance on application procedures, appropriate rehabiliation work, and will visit properties as needed. The AHC will recommend qualifying projects to the Historic Tax Credit Evaluating Committee who will rank projects in the order they are to receive tax credit reservations. The program does require an application fee that is non-refundable even if a project is not approved for a credit.

To determine if your property is listed in the Alabama Register of Landmarks and Heritage or the National Register of Historic Places, click HERE to begin exploring the interactive map of historic properties. This web map represents a plot of properties and historic districts listed in our various preservation programs. Locational data on this map is considered highly accurate at all map scales, unless a specific disclaimer is made in the attribute data (typically after the property name). This map is currently a work in progress; however, the map automatically updates as new details and attachments are added. For those that prefer, this data is also available as a GIS REST Service for use with ArcGIS for Desktop. Details are listed on the map’s contents page.

 

AD VALOREM (ALABAMA PROPERTY TAX BENEFIT)

Historic buildings in Alabama may be assessed for ad valorem purposes at the lowest tax rate. This benefits historic property that is income-producing since owner-occupied historic homes are already assessed at the lowest tax rate. Historic buildings are those that are listed in or eligible for listing in the National Register of Historic Places. The Alabama Historical Commission must certify that the property is currently listed or make a determination of eligibility for the National Register based on information provided by the owner. (§40-8-1, Code of Alabama 1975). The type of documentation required from an applicant will vary upon a property’s current National Register status. The responsibility of providing well-researched and thorough information and making a case for eligibility rests with the property owner who is seeking the tax benefit.

As of October 23, 2023, all applications for the Ad Valorem Program must be submitted in electronic format to the Alabama Historical Commission. Hard copies of the Ad Valorem Application, photographs, maps, and other supporting materials will no longer be accepted. Ad Valorem Applications must be submitted electronically HERE for review and processing by the Alabama Historical Commission.

Ad Valorem Property Tax Benefit Fact Sheet & Guidelines

For more information about the electronic submission process, contact Andrew Parker at 334-230-2644 or Andrew.Parker@ahc.alabama.gov.

CONTACT

For more information about the Alabama Historic Rehabilitation Tax Credit Program, contact Andrew Parker, 334-230-2644 or Andrew.Parker@ahc.alabama.gov.