SB395 Alabama 2011 Session

Summary

Primary Sponsor

Ben H. Brooks

Republican

Co-Sponsor

Trip Pittman

Session

Regular Session 2011

Title

Property, income tax deduction the lesser of 50 percent of costs or $3,000 for retrofit improvements to homes to help withstand hurricane and windstorm damages, rate filings and related actuarial information for homeowners insurance coverage to be public information available on Internet (2011-21133)

Summary

SB395 would give Alabama homeowners two separate state income tax deductions for retrofitting homes to resist hurricane, windstorm, or flood damage (with a $3,000 cap or 50% of costs), and would make homeowners insurance rate filings public information with protections for trade secrets.

What This Bill Does

Creates two tax deduction paths for retrofit costs to strengthen homes against wind and flood damage; Section 1 targets homeowners in certain insurance zones, Section 2 applies to all Alabama residents. Both deductions are available whether or not the taxpayer itemizes, require certification that the fortifications were implemented, and have a cap of the lesser of 50% of costs or $3,000 (with a combined $3,000 limit across Sections 1 and 2). Costs funded by grants may affect eligibility, and costs claimed under one section cannot be used for the other. Separately, rate filings for homeowners insurance would become public information (with confidential data protected), accessible through the state Department of Insurance and the Commissioner of Insurance, effective after the act’s respective dates.

Who It Affects

• Alabama homeowners who retrofit their primary residence to resist hurricane, windstorm, or flood damage and incur eligible costs (Sections 1 and 2), subject to certification and cap rules.
• The general public and consumers of homeowners insurance in Alabama, who would be able to review rate filings and related actuarial information (with trade-secret information kept confidential).

Key Provisions

• Section 1 creates a state income tax deduction for retrofit costs for residences located in Alabama Insurance Underwriting Association zones; deduction available regardless of itemization, requires certification that fortifications were implemented, and is capped at the lesser of 50% of costs or $3,000; costs funded by grants may affect eligibility; deductions from Section 1 cannot be used as the basis for Section 2 and total combined deductions from Sections 1 and 2 cannot exceed $3,000.
• Section 2 creates a state income tax deduction for retrofit costs to make a residence more resistant to wind and flood damage; allows repairs, replacements, and upgrades that meet specified standards (Fortified programs or ICC codes); requires certification; capped at the lesser of 50% of costs or $3,000; grant-funded costs are ineligible if not included in income; deductions from Section 1 and Section 2 cannot be used together beyond the $3,000 cap.
• Section 3 requires homeowners insurance rate filings and related actuarial information to be public information after the act’s effective date, available at the Montgomery office of the Commissioner of Insurance and on the Department of Insurance website; confidential proprietary data (like actuarial risk analyses) are protected as trade secrets, with procedures for disclosure and court-order notices.
• Section 4 states Sections 1 and 2 take effect immediately upon enactment, while Section 3 takes effect on the first day of the third month after enactment.

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