The bill amends Section 40-18-111 of the Code of Alabama 1975, extending the existing income tax credit for the construction, acquisition, or installation of qualified storm shelters. The tax credit is available to eligible taxpayers who install such shelters at their primary residence within the state. The credit is the lesser of $3,000 or 50% of the total cost, excluding any costs reimbursed by insurance, grants, or other government subsidies. The bill specifies that the tax credit is non-refundable, non-transferable, and cannot reduce a taxpayer's liability below zero. It also cannot be carried forward to subsequent tax years. Taxpayers must apply for and claim the credit in the year they receive a tax credit certificate.

The bill includes several insertions and deletions to the existing law. The term "shall" is deleted in the definitions section, while the process for applying for and claiming the tax credit is clarified with insertions. The bill also extends the effective period of the tax credit from the 2025 tax year to the 2028 tax year, unless further extended by the Legislature. Additionally, the bill sets an annual cap of $2 million for the aggregate amount of tax credits available to all taxpayers. The Alabama Emergency Management Agency is tasked with issuing tax credit certificates on a first-come, first-served basis and is required to report on the number of shelters installed and the amount of credits claimed. The bill is set to become effective on October 1, 2024, and the Senate passed it on April 30, 2024.

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