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Alabama’s Historic Tax Credit Program

The Business View – April 2017 / News You Can Use


The renewal of Alabama’s Historic Tax Credit program is making headway in the Alabama Legislature this session.

 

As a top priority of the Mobile Area Chamber’s 2017 legislative agenda, the credit is a crucial factor in the redevelopment of aging structures and a proven community builder.

 

During its first three years of operation, the tax credit was responsible for 2,133 direct construction jobs and 1,373 operational-phase jobs across the state. Cities across Alabama have benefited. Some of the Mobile projects using the tax credit program are:

  • Marine Street Lofts
  • Old Shell Road Lofts
  • Staples-Pake Building
  • Buick Building
  • The Admiral Hotel

 

And these historic renovation projects are stimulating even more private investment in the areas around them.

 

The 2016 economic impact study of the tax credit, performed by public accounting firm Novogradac & Co. LLP, found that every $1 the state invests through the tax credit, nearly $4 will be paid in state and local taxes over the next 20 years.

 

“The Historic Tax Credit has enabled developers to make renovation projects work financially, that may not have otherwise been possible. In addition to the added community benefits these projects bring to historic areas, there are few other investments that have a 4 to 1 return for our state’s tax dollars,” said Patty Howell, director of regional affairs for the Chamber.

 

Click here to read The Business View – April 2017