HB428 Alabama 2019 Session

Summary

Primary Sponsor

Joe LovvornRepresentative

Republican

Session

Regular Session 2019

Title

Taxation, tax credit, authorized for the cost of acquisition and construction of a qualified storm shelter

Summary

HB 428 would create a nonrefundable Alabama income tax credit for one-third of the cost to construct, acquire, or install a qualified storm shelter, with credits available over three years and caps depending on shelter type.

What This Bill Does

Defines a qualified storm shelter as a shelter capable of withstanding an EF5 tornado, meeting FEMA minimum criteria, and placed either as an attachment to the primary residence or for common use in a residential development, apartment complex, or condominium. Creates an income tax credit equal to one-third of the total cost of the shelter, available for three years and claimed each year for the preceding calendar year. Imposes caps: up to $6,000 for shelters attached to a primary residence and up to $25,000 for shelters in residential developments, apartment complexes, or condominiums used for common use. The credit is nonrefundable and non-transferable, cannot reduce tax liability below zero, and requires documentation on costs and FEMA criteria via a Department of Revenue form.

Who It Affects

• Homeowners who install a qualified storm shelter attached to their primary residence (eligible for up to $6,000 of the credit per shelter, spread over three years).
• Owners or residents of residential developments, apartment complexes, or condominiums who install a qualified storm shelter for common use (eligible for up to $25,000 of the credit per shelter, spread over three years).

Key Provisions

• Qualified storm shelter criteria: EF5-tornado capability, placement as an attachment to the primary residence or on the same lot, or in a development/complex for common use, and meeting FEMA minimum criteria for safe rooms.
• Credit amount and duration: one-third of total cost, available over three years, claimed annually for the preceding calendar year.
• Credit caps: up to $6,000 for primary residence attachments; up to $25,000 for shelters in developments, apartment complexes, or condominiums for common use.
• Nonrefundable and non-transferable: credit cannot reduce tax liability below zero and cannot be sold or transferred.
• Administration: Department of Revenue will provide the form and require documentation showing costs and FEMA criteria.
• Effective date: becomes law on the first day of the third month after passage and governor's approval.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Taxation