HB 452 Alabama House · 2026 Regular Session

Income taxes, state income tax credit for qualified rehabilitation expenses of certified historic properties extended, annual credit amount increased

HB 452 extends and increases a state tax credit for owners of certified historic properties who make qualified rehabilitation improvements. It directly affects property owners and developers working on historic buildings that meet state certification standards. The bill raises the annual credit amount and increases the total funding cap from $20 million to $300 million per year for this program. This change allows more property owners to claim the credit while expanding the state's annual investment in historic preservation.

Issues: ✓ Budget & Taxes

Bill status passed 3 of 5 stages cleared

Introduction

Feb 2026

Committee Review

Mar 2026

House Passage

Mar 2026

Senate Passage

Governor

Introduced Feb 12, 2026 Last action Mar 5, 2026

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What changed between versions

Introduced → Engrossed · 5 edits · Mar 5, 2026

MODERATE

This bill extends the state historic rehabilitation tax credit program through 2032 and adjusts eligibility thresholds. It raises the age requirement for properties in new applications from 60 to 75 years, introduces a new credit tier for rural communities with lower spending thresholds, and clarifies rules regarding outbuildings and historic districts.

Scope change

The program's duration is extended from 2027 to 2032, and eligibility criteria are modified to include specific provisions for rural and urban communities.

TIMELINE

Extended the expiration of the historic rehabilitation tax credit program from the end of 2027 to the end of 2032.

ELIGIBILITY

Increased the minimum age requirement for properties to qualify for the credit from 60 years to 75 years for applications submitted after June 1, 2023.

DEFINITION

Added a new definition for 'Urban Communities' to distinguish them from rural areas for credit calculation purposes.

Added specific language clarifying that costs for outbuildings are only eligible if the building contributes to the historical significance of the main structure.

FISCAL

Adjusted the minimum rehabilitation spending threshold for rural communities to $20,000 for the extended program years (2028-2032), while keeping the urban threshold at $25,000.

Floor votes

How they voted

This bill passed the House by voice vote (no roll call recorded).

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Amendments

Mar 5, 2026

Upper · Passed

Pending Committee Action in Second House (Finance and Taxation Education)

upper

Mar 5, 2026

Lower · Passed

Motion to Read a Third Time and Pass as Amended - Adopted Roll Call 757

lower

Mar 5, 2026

Lower · Passed

Motion to Adopt - Adopted Roll Call 756

lower

Mar 5, 2026

Introduced

Pringle 1st Amendment Offered

lower

Mar 5, 2026

Lower · Passed

Motion to Adopt - Adopted Roll Call 755

lower

Mar 5, 2026

Introduced

Ways and Means Education Engrossed Substitute Offered (Ways and Means Education)

lower

Feb 19, 2026

Lower · Passed

Reported Out of Committee House of Origin (Ways and Means Education)

lower

Feb 12, 2026

Lower · Passed

Pending Committee Action in House of Origin (Ways and Means Education)

lower

1 primary · 0 co-sponsors