The bill amends Section 40-18-111 of the Code of Alabama 1975 to extend the existing income tax credit for the construction, acquisition, or installation of a qualified storm shelter at a taxpayer's primary residence. The tax credit is set at a maximum of $3,000 or 50% of the total costs incurred, excluding any reimbursed amounts from other entities. The bill specifies that the tax credit must be applied for and claimed in the tax year when the taxpayer receives a tax credit certificate from the Alabama Emergency Management Agency. Additionally, the tax credit is non-refundable, non-transferable, and cannot be carried forward, with an annual cap of $2 million for all taxpayers.

The bill also includes several definitions related to manufactured homes, primary residences, and qualified storm shelters, and it extends the effectiveness of the tax credit from the 2025 tax year to the 2028 tax year. The Alabama Emergency Management Agency is tasked with issuing tax credit certificates on a first-come, first-served basis until the annual cap is reached, and it is required to prepare a report detailing the number of storm shelters constructed and the amount of tax credits claimed. The act is set to become effective on October 1, 2024.

Statutes affected:
Introduced: 40-18-111
Enrolled: 40-18-111