HB276 Alabama 2020 Session

Summary

Primary Sponsor

Joe LovvornRepresentative

Republican

Session

Regular Session 2020

Title

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

Summary

Alabama creates a state income tax credit to help cover the cost of qualified storm shelters at a taxpayer’s primary residence, with eligibility rules, caps, and a certification process.

What This Bill Does

The bill establishes an income tax credit for eligible taxpayers who incur costs to construct, acquire, or install a qualified storm shelter for their primary residence in Alabama. The credit amount is either $3,000 or 50% of total costs if the shelter is on property owned by the taxpayer, or $4,500 or 75% of total costs if the shelter is on property owned by someone else, whichever is less, and the costs cannot be reimbursed by third parties. The credit is nonrefundable and must be claimed in the year the shelter is placed in service; it is administered with a cap and requires certification by the Alabama Emergency Management Agency before claim.

Who It Affects

• Homeowners (including those with manufactured homes or single-family residences) who install or acquire a qualified storm shelter for their primary residence in Alabama.
• Individuals who install a qualified storm shelter on property owned by another person, eligible for a higher credit amount.

Key Provisions

• Provides an Alabama income tax credit for costs to construct, acquire, or install a qualified storm shelter for a taxpayer's primary residence in the state.
• Defines a qualified storm shelter as one that can withstand an EF5 tornado, is attached to the primary residence or on the same lot, meets FEMA minimum criteria, and is built on-site or manufactured offsite and installed.
• Sets credit amounts: $3,000 or 50% of total cost if the shelter is on property owned by the taxpayer; $4,500 or 75% of total cost if on property owned by another person, whichever is less.
• Excludes costs reimbursed by third parties (e.g., insurance or grants) from the credit calculation.
• The credit is nonrefundable and cannot reduce tax liability below zero; must be claimed in the year the shelter is placed in service.
• Credit certificates are issued by the Alabama Emergency Management Agency after certification, with administration by the Department of Revenue; annual cap of $2,000,000 and first-come, first-served processing.
• Taxpayers must apply to the Alabama Emergency Management Agency for certification before claiming the credit and submit required cost documentation; AEMA certifies eligible costs and notifies if funds are exhausted.
• AEMA must issue an annual informational report on qualified shelters and credits; the agency may adopt rules to administer the act; information is shared with the Legislature.
• Effective January 1, 2021, through the 2024 tax year, unless extended by legislation.

AI-generated summary using openai/gpt-5-nano on Feb 22, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Taxation