The Historic Tax Credit Bill Passes the Senate!
May 15, 2017
HB 345, sponsored by Representative Victor Gaston (R-Mobile) and 88 co-sponsors, passed the Senate Tuesday of last week just before 5:00pm unanimously with a vote of 31-0.
Senator Jabo Waggoner (R-Vestavia), who sponsored the Senate companion bill, introduced HB 345 on the Senate floor as the long awaited Historic Tax Credit Bill. Senator Waggoner offered the same substitute version of the bill that passed the Senate Committee on Finance, Taxation and Education two weeks ago. Waggoner explained the historic tax credit received a “B” rating from a study conducted by the University of Tennessee and that out of the 35 Senators, 29 Senators sponsored the Senate companion bill.
Some Senators expressed concerns about the tax credits being spread across the State. Senator Waggoner explained those concerns are addressed in the substitute bill, which includes a provision that encourages rural communities to participate in the tax credit program. Forty percent of the tax credits will be reserved to taxpayers with a certified rehabilitation project located in a county where the population does not exceed 175,000. The rural counties would have six months to apply for the credit. In the event applications are not received, the funds would revert for allocations of other project applications.
Sen. Waggoner explained this provision levels the playing field and will help small, rural counties. Senator Waggoner made the motion for final passage. HB 345 passed the Senate unanimously.
Thank you, Alabama REALTORS® for the strong response on the Call for Action on the Historic Tax Credit Bill, HB 345! 530 of our members contacted their Senator encouraging them to vote yes on the bill.
HB 345 passed the House last month. Because the Senate passed a slightly different version of the bill, HB 345 is headed back to the House for concurrence, which is expected this week. After the House concurs, the bill will head to the Governor’s desk.
Alabama REALTORS® support HB 345. It will renew the Alabama Historic Rehabilitation Tax Credit program that expired on May 15, 2016. The Historic Tax Credit helps revitalize cities and communities across Alabama. Studies show the credit has a huge economic impact and preserves historic structures in our state.
Pictured: Senators discussing the Historic Tax Credit Bill on the floor before passage last week.