The Alabama Historic Tax Credit, which was renewed by the Legislature in 2017 and again in 2021, continues to benefit projects statewide. The Alabama Legislature renewed the Historic Tax Credit in 2017 and again in 2021, setting aside $200 million to be spread over ten years (2018 to 2027).

Setting aside $200 million over a ten-year period ranging from 2018 to 2027, the $20 million in annual funding is split with 40%, totaling $8 million, reserved for projects in rural counties, and 60%, which is the remaining $12 million, reserved for projects in urban counties. As anticipated, applications for urban projects far outpace those for rural project, but the unused rural allocation may roll over to utilization in urban areas.

Through the first two quarters of 2025, seven new projects and three supplemental allocations have been approved, totaling nearly $16 million in reserved credits. Two of the projects are in rural counties, with the other five projects and three supplementals located in Jefferson, Mobile, and Montgomery counties. If these projects continue to meet statutory requirements and receive the reserved credit, more than $4.1 million will remain unallocated for 2025.

Since 2018, 131 projects have participated in the Tax Credit Program, including 72 completed projects and 58 currently active. The completed projects represent more than $500 million in total investments, amounting to over $69 million in tax credit certificates.

Combined, active and completed projects have used or reserved more than $165 million in tax credits—over $130.4 million for urban projects and more than $34.6 million for rural developments.

Among urban areas, Birmingham and Mobile lead in participation. Birmingham has 49 completed or active projects and 13 supplemental credit requests, while Mobile follows with 26 projects and 5 supplemental requests. Montgomery ranks next with 5 projects, followed by Huntsville with 3. Bessemer and Mountain Brook each have 2 projects, and Homewood and Fairhope have 1 project apiece.

Rural projects are more geographically dispersed, with tax credit activity in at least 24 cities and towns across the state. Andalusia and Decatur lead rural areas with 5 projects each. Several other cities—Decatur, Atmore, Gadsden, Selma, and Dothan—have hosted multiple projects, while communities like Wetumpka, Prattville, Fort Payne, Demopolis, Heflin, Camp Hill, Lafayette, Oxford, Piedmont, and Florence each have one project approved or completed.