Birmingham’s real estate community will be closely watching the upcoming Alabama legislative session to see if lawmakers will extend the historic renovation tax credit, which has been a catalyst for millions of dollars worth of downtown development projects.
As lawmakers prepare to head to Montgomery for a session that could decide the future of the Alabama Historic Rehabilitation Tax Credit, a new study shows the tax credit has paid huge dividends for Alabama.
According to the study commissioned by the Alabama Historical Commission, the tax credit program is responsible for more than $384 million in private investment in the state since it was implemented in 2013.
Projects like the renovation of the Pizitz, the Thomas Jefferson Tower, and the Redmont Hotel are all utilizing the credit in downtown Birmingham.
The study also shows that for every dollar of tax credit allocation the state invests in the program, $3.90 is returned over a 20-year period.