HB8 Alabama 2019 Session

Summary

Primary Sponsor

Tommy Hanes

Republican

Session

Regular Session 2019

Title

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

Summary

HB 8 would create a nonrefundable Alabama income tax credit equal to one-third of the cost to build, buy, or install a qualified storm shelter attached to a homeowner's primary residence, usable over three years.

What This Bill Does

It establishes an income tax credit for eligible taxpayers who incur costs for a qualified storm shelter. The credit is one-third of the total cost and is available for up to three years. It cannot reduce tax liability below zero and is not refundable or transferable. Taxpayers must apply each year and provide documentation showing the costs and that the shelter meets FEMA criteria; the Department of Revenue will provide the claim form.

Who It Affects

• Homeowners who install or construct a qualified storm shelter attached to their primary residence (and meet the shelter criteria). This group could receive up to one-third of their shelter costs each year for three years, within their tax liability.
• The Alabama Department of Revenue and taxpayers claiming the credit, since the former administers the credit and the latter must provide documentation and apply annually.

Key Provisions

• Qualified storm shelter must be capable of withstanding an EF5 tornado, be attached to the taxpayer's primary residence (with no other shelter attached to that residence), and meet or exceed FEMA minimum criteria for residential safe rooms.
• Credit equals one-third of the total cost of construction, acquisition, or installation, available for three years.
• Credit cannot reduce tax liability below zero; it is nonrefundable and non-transferable; taxpayers must apply each year to receive the credit for the preceding calendar year.
• The Department of Revenue will provide a form requiring documentation that costs were incurred for the shelter and that the shelter meets FEMA criteria.
• Effective date: the act becomes law on the first day of the third month after passage and governor 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