Jimmy Long Quoted in the BBJ About Alabama’s Historic Tax Credits
Birmingham Business Journal
Bradley partner Jimmy Long was quoted in the Birmingham Business Journal discussing Alabama’s historic tax credits. Recently, the Alabama Legislature extended the state’s historic rehabilitation tax credit to 2027, allocating a 25% tax credit on qualified rehabilitation costs to a maximum of $5 million for approved projects.
Available tax credits in Opportunity Zones provide investors incentives to concentrate on projects in those areas. The IRS designated 24 Birmingham census tracts as Opportunity Zones. Developers in those areas can also use the state credits with a 20% federal historic tax credit.
Long said a project’s ability to qualify for both tax credits depends on its age. “Alabama does have a provision where the building has to be at least 60 years old, whereas for federal purposes, (it has) to be 50 years old, but that is a little bit of a deal where there’s a decade of buildings that don’t get to benefit from the credit,” he said.
Long also explained the program’s extension will help meet the demand of projects on the waitlist. “There’s a list of qualified projects just sitting there waiting for the credits that thankfully now will all receive them,” he said.
The complete article, “New frontiers coming for Alabama historical tax credits,” was published in the Birmingham Business Journal on September 3, 2021. (login required)