Tax credit could benefit downtown Birmingham
Economic development in downtown Birmingham is expected to get a boost from a new Historic Tax Credit that was passed by the Alabama legislature and signed by Governor Robert Bentley. The law will allow real estate investors a tax credit of 25% of their expenses, up to $5 million in state income taxes, for their stake in the redevelopment of a qualifying historic property. For years developers, realtors and economic development agencies across the state have been pushing for the incentive, which most neighboring states already have.
REV Birmingham CEO David Fleming gives credit to strong leadership from Jefferson County legislators, the local real estate development community and a coalition of economic development groups. He says investors will look to Birmingham and other areas of the state for opportunities that have passed by Birmingham in recent years. Fleming said. "Whether it's a project like the Cabana Hotel, the Ramsay-McCormack building in Ensley or a historic house in Norwood or College Hills, this incentive could be that last bit of financing help that pushes a project to reality."
REV Birmingham is encouraging developers and investors interested in historic renovations to contact them immediately to get help with the initiative. The Historic Tax Credit bill expires within three years.