§ 40-18-532 — Definitions

Alabama § 40-18-532

• Jurisdiction: Alabama
• Title 40: Revenue and Taxation
• Ch. 18: Income Taxes
• Art. 27: Alabama Workforce Housing Tax Credit Act

Text

For the purposes of this article, the following terms have the following meanings:
(1) ALABAMA TAX LIABILITY. The taxes otherwise due under Sections 27-3-29, 27-4A-3, 40-16-4, or 40-18-2.
(2) AUTHORITY. The Alabama Housing Finance Authority or its successor authority or agency.
(3) AWARD. The issuance by the authority of either of the following:
a. A reservation letter pursuant to the qualified allocation plan.
b. A determination letter for workforce housing tax credits to a qualified project during an award cycle, the amount of which award shall be claimed in each year of the credit period.
(4) AWARD CYCLE. Each fiscal year or other 12-month period designated by the authority over which the authority awards workforce housing tax credits to qualified projects.
(5) AWARD CYCLE CAP. The sum of all of the following:
a. Five million dollars ($5,000,000) for each year of the 10-year credit period as defined in 26 U.S.C. § 42(f)(1). Any funds not awarded may be carried forward to the next award cycle.
b. The amount, if any, by which the award cycle cap prescribed by this article for the preceding award cycle exceeds the workforce housing tax credits awarded by the authority in that award cycle.
c. The amount of workforce housing tax credits recaptured or otherwise disallowed under Section 40-18-533(e) in the preceding fiscal year.
(6) CREDIT PERIOD. The 10-year credit period as defined in 26 U.S.C. § 42(f)(1), subject to the special rule for the first year of the credit period as set forth in 26 U.S.C. § 42(f)(2).
(7) DEPARTMENT. The Alabama Department of Revenue, or its successor agency.
(8) ELIGIBILITY CERTIFICATE. A certificate issued by the authority to the owner of a qualified project certifying that the project is a qualified project that qualifies for the workforce housing tax credit authorized by this article and specifying the annual amount of workforce housing tax credits that may be claimed in each year of the credit period. The authority shall issue an eligibility certificate to a qualified project upon the authority’s approval of a final cost certification that complies with the authority’s requirements.
(9) FEDERAL LOW-INCOME HOUSING TAX CREDIT or FEDERAL TAX CREDIT. The federal tax credit as provided in 26 U.S.C. § 42.
(10) FOUR PERCENT QUALIFIED PROJECT. A qualified project that is eligible for federal low-income housing tax credits pursuant to 26 U.S.C. § 42(h)(4).
(11) MULTIFAMILY HOUSING REVENUE BOND POLICY. The authority’s policy, as amended from time to time, regarding the allocation of tax-exempt bond volume cap for affordable multifamily housing.
(12) QUALIFIED ALLOCATION PLAN. As defined in 26 U.S.C. § 42(m)(1)(B), subject to additions and modifications necessary to implement this article.
(13) QUALIFIED PROJECT. A qualified low-income building, as defined in 26 U.S.C. § 42(c)(2), that is located in the state, is eligible for the federal low-income housing tax credit, and is placed in service on or after January 1, 2025.
(14) QUALIFIED TAXPAYER. A taxpayer owning an interest, directly or indirectly, through one or more pass-through entities, in a qualified project at any time prior to filing a tax return claiming a workforce housing tax credit.
(15) TAXPAYER. An individual, corporation, S corporation, partnership, limited partnership, limited liability partnership, limited liability company, joint venture, financial institution, fiduciary of an estate of a trust, or insurer.
(16) WORKFORCE HOUSING TAX CREDIT or TAX CREDIT. The tax credit created by this article.

Legislative History

(Act 2024-302, §3.)