HB454 Alabama 2010 Session

Summary

Primary Sponsor

James O. Gordon

Democrat

Co-Sponsors

Randy DavisSteve McMillanJamie IsonJim BartonSpencer Collier

Session

Regular Session 2010

Title

Income tax, tax credit authorized for retrofitting home due to loss from hurricane or windstorm events, for sales tax paid on retail sale of tangible personal property used to retrofit home, and for excess premium paid for property and casualty insurance, Consumer Hurricane Mitigation Tax Credit Act

Summary

HB454 creates new tax credits to help Alabama homeowners retrofit their homes to resist hurricane and windstorm losses, including credits for retrofit costs, sales tax on retrofit items, and excess insurance premiums.

What This Bill Does

It allows an individual to claim an income tax credit for costs to retrofit a home that is the taxpayer's permanent place of abode to resist hurricane or windstorm losses, with specific limits. It also provides a credit against income tax for Alabama sales tax paid on tangible personal property used for the retrofit, up to a maximum of $1,500. Additionally, it offers a credit for excess premiums paid for property and casualty insurance covering the home, with a maximum of $1,250 and a five-year carryforward for any unused portion. Costs funded by certain grants may be ineligible if the grant funds aren’t included in the taxpayer’s income. The act becomes effective January 1, 2011.

Who It Affects

• Homeowners or other individual taxpayers who retrofit their permanent place of abode to resist hurricane or windstorm losses and may claim the related credits.
• Taxpayers who incur retrofit-related costs for items subject to Alabama sales tax and those who pay excess premiums for property and casualty insurance on their home, because these costs can generate the sales tax and insurance premium credits.

Key Provisions

• Section 2(a): allows an income tax credit for retrofit costs to resist hurricane/windstorm losses, up to 25% of cost or $1,000, whichever is lesser; costs must be for retrofit measures (not ordinary repairs) and for a structure defined as the taxpayer's permanent place of abode; retrofit measures align with Section 27-31D-2; grant funds not included in income may affect eligibility.
• Section 3: allows an income tax credit for Alabama state sales tax paid on retrofit-related tangible personal property, equal to 4% of the purchase price; maximum credit of $1,500; grant funds not included in income may affect eligibility.
• Section 4: allows an income tax credit for excess premiums paid for property and casualty insurance on the home; excess = premium paid minus 5% of adjusted gross income; maximum credit of $1,250; unused credits can be carried forward for five years.
• Section 5: effective date is January 1, 2011.

AI-generated summary using openai/gpt-5-nano on Feb 25, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Taxation