Income tax credits for private homeowners and owners of commercial properties who substantially rehabilitate historic properties that are listed in or eligible for the National Register of Historic Places and are 60 years old or older will be issued using sales tax revenues in the Education Trust Fund by annual transfer into the Historic Preservation Income Tax Credit Account.

Income tax credits for rehabilitation of historic structures are equal to 25 percent of the qualified rehabilitation expenditures for certified historic structures. The income tax credit must be claimed by the taxpayer for the taxable year in which the certified rehabilitation is placed in service. The credit is refundable and transferable but cannot be carried forward.

For the tax years 2018 through 2027, the aggregate amount of all tax credits that may be reserved in any one of such years by the Alabama Historical Commission and certification of such rehabilitation of historic projects shall not exceed $20 million, with no more than $200 million reserved by the Alabama Historical Commission during the period from May 25, 2017, through December 31, 2027.

The Commissioner of Revenue will annually distribute the funds in the Historic Preservation Income Tax Credit Account, set up in the Education Trust Fund, to the owners or transferees of the certified rehabilitation of historic structures.