SB293 Alabama 2021 Session

Summary

Primary Sponsor

Tom Whatley

Republican

Co-Sponsors

William “Bill” M. BeasleyRandy Price

Session

Regular Session 2021

Title

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

Summary

The bill would create a nonrefundable Alabama income tax credit to help pay for qualified storm shelters at a taxpayer's primary residence, with a limited annual cap and a certificate-based process.

What This Bill Does

It provides a tax credit equal to either $3,000 or 50% of the total costs, whichever is less, for constructing, acquiring, or installing a qualified storm shelter. The shelter must meet specific criteria (FEMA guidelines, attached to the primary residence, and not have another shelter on the same lot). The credit is claimed in the tax year a tax credit certificate is issued, cannot reduce tax liability below zero, and is not transferable. The Alabama Emergency Management Agency issues certificates on a first-come, first-served basis until a $2,000,000 annual cap is reached, after which applicants are notified to try the next year. The Department of Revenue applies the credit to the taxpayer's state income tax, and the program includes reporting and auditing requirements plus a requirement for annual reports to the Legislature.

Who It Affects

• Taxpayers who incur costs to construct, acquire, or install a qualified storm shelter for their primary residence in Alabama (including manufactured homes and single-family residences) and who may be eligible for the credit.
• State agencies (Alabama Emergency Management Agency and Department of Revenue) responsible for administering the credit, issuing tax credit certificates, auditing credits, collecting required information, and reporting to the Legislature.

Key Provisions

• Establishes a nonrefundable Alabama income tax credit for costs to construct, acquire, or install a qualified storm shelter at the taxpayer's primary residence.
• Credit amount is either $3,000 or 50% of total eligible costs, whichever is less; costs reimbursed by third parties (insurance, grants) are excluded.
• Credit must be claimed in the tax year the tax credit certificate is issued and cannot reduce tax liability below zero; not refundable or transferable.
• Annual cap of $2,000,000 for the credit; certificates issued on a first-come, first-served basis; if cap is reached, applicants are notified and can apply again next year.
• Qualified storm shelter definitions require EF5-tornado resistance, attachment to the primary residence or same lot, compliance with FEMA criteria, and site installation on the residence site (or offsite manufactured and installed).
• Administrative framework: AMA issues tax credit certificates, may audit improperly obtained credits, and prepares a report; DOR applies the credit to the tax liability; AMA may adopt implementing rules.
• Informational reporting to AMA is required before claiming the credit, and AMA must provide a report detailing shelter installations and credits claimed; information is confidentially handled as specified.

AI-generated summary using openai/gpt-5-nano on Feb 23, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Taxation