The mayors of Alabama’s ten largest cities have thrown their collective weight behind legislation to extend and expand the state’s historic rehabilitation tax credit program, which is currently set to expire at the end of 2027.
The group, known as the Alabama Big 10 Mayors and representing a nonpartisan coalition of the state’s ten largest cities: Huntsville, Mobile, Tuscaloosa, Hoover, Dothan, Birmingham, Auburn, Decatur, Montgomery, and Madison, endorsed companion bills SB313 and HB452.
The bills would extend the state income tax credit for qualified rehabilitation expenses of certified historic properties and increase the annual credit amount.
The legislation is sponsored across party lines by State Sens. Bobby Singleton (D-Greensboro), Andrew Jones (R-Centre), and Roger Smitherman (D-Birmingham) in the Senate, and by State Rep. Chris Pringle (R-Mobile) in the House.
The Alabama Historic Rehabilitation Tax Credit is a 25% refundable tax credit available to owners of income-producing properties who substantially rehabilitate historic properties that are listed in or eligible for the National Register of Historic Places and are at least 75 years old.
The refundable nature of the credit is significant: unlike many tax credits, this one can provide a cash benefit even if a developer’s tax liability is low — a meaningful advantage for nonprofits and smaller developers.
When paired with the federal Historic Tax Credit, a 20% credit permanently established in 1981 as part of a Reagan-era economic stimulus package, projects can potentially receive up to 45% of rehabilitation costs back through tax incentives.
That level of subsidy is often the difference between a historic renovation being financially viable or not, the mayors say.
“Historic tax credits have consistently delivered results for Alabama’s cities and towns,” they said in a joint statement. “This program turns underutilized and vacant properties into thriving assets – creating jobs, generating private investment, and strengthening local economies.”
Alabama’s original Historic Preservation Tax Credit was instituted in 2013 and expired in 2016.
When renewal came up in the 2016 legislative session, the bill was blocked by Senate leadership amid concerns about the program’s cost to the state budget and disparities between urban areas, which had abundant qualifying properties, and rural communities with fewer options.
The credit was re-established in 2017, limited to tax years 2018 through 2022, with $20 million available annually and a 40/60 split between rural and urban counties. The program was subsequently renewed again, and currently provides $20 million in tax credits per calendar year through 2027.
Bills on the table this session would push that expiration to 2032, raise the annual cap, and add enhanced incentives specifically for rural communities.
“These projects are more than preservation—they are catalysts for growth,” the mayors said. “They increase property values, expand the tax base, and create vibrant places where people want to live, work, and invest.”
“This legislation continues a smart, forward-looking investment in Alabama’s future,” the mayors concluded. “We urge the Legislature to pass this legislation and continue supporting a program that delivers real economic impact for communities across our state.”
An earlier impact study commissioned by the Alabama Historical Commission found that for every one dollar of tax credit allocation the state invests in the program, $3.90 is returned to state and local tax collections over a 20-year period.
The same study found developers consistently said rehabilitations would not have been financially possible without the credits.
Grayson Everett is the editor in chief of Yellowhammer News. You can follow him on X @Grayson270.
