HB380 Alabama 2024 Session

Summary

Primary Sponsor

Joe LovvornRepresentative

Republican

Session

Regular Session 2024

Title

Taxation and revenue; income tax credit for storm shelter construction, extended

Summary

HB380 extends the Alabama income tax credit for storm shelters at primary residences through the 2028 tax year and keeps current program rules.

What This Bill Does

The bill extends the existing income tax credit for constructing, acquiring, or installing a qualified storm shelter at a taxpayer's primary residence through the 2028 tax year. The credit remains the lesser of $3,000 or 50% of total eligible costs, excluding costs reimbursed by insurance, grants, or subsidies. It stays nonrefundable, nontransferable, and not carryable forward, with an annual statewide cap of $2,000,000. Taxpayers must file an informational report with the Alabama Emergency Management Agency before claiming, the Agency issues a tax credit certificate on a first-come basis, and the Department of Revenue applies the credit to the tax liability up to zero.

Who It Affects

• Eligible taxpayers who incur costs to construct, acquire, or install a qualified storm shelter at their primary residence in Alabama (potential credit up to $3,000 or 50% of costs).
• The Alabama Emergency Management Agency and the Department of Revenue, which administer, certify, report on, and apply the credits to individual tax liabilities.

Key Provisions

• Extends the storm shelter tax credit through the 2028 tax year (the act becomes effective October 1, 2024).
• Keeps the credit at up to $3,000 or 50% of eligible costs, whichever is less, with costs reimbursed by third parties excluded; credit is nonrefundable and not carried forward.
• Imposes an annual statewide cap of $2,000,000 on credits; credits are issued first-come, first-served and no additional credits are granted once the cap is met for the year.
• Requires an annual informational report to the Alabama Emergency Management Agency before claiming; the Agency issues tax credit certificates and the Department of Revenue applies the credit to the tax liability.
• Defines key terms including primary residence, manufactured home, and qualified storm shelter (with criteria such as EF5 tornado capability and FEMA safe-room standards).

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 & Revenue