The proposed bill aims to establish an income tax credit for taxpayers who construct, acquire, or install qualified storm shelters at their primary residences. It introduces a new section, 26-51-518, to the Arkansas Code, defining key terms such as "qualified storm shelter" and "primary residence." The bill specifies that the tax credit will be equal to the lesser of 50% of the total costs incurred for the storm shelter or $3,000, with the total credits awarded capped at $2 million per calendar year. Taxpayers must file an informational report with the Division of Emergency Management to claim the credit, and the division will issue tax credit certificates on a first-come, first-served basis until the cap is reached.

Additionally, the bill mandates the Division of Emergency Management to prepare an annual report detailing the number of storm shelters constructed and the amount of tax credits awarded. The effective date for this tax credit provision is set for tax years beginning on or after January 1, 2025. The bill also allows the division and the Department of Finance and Administration to adopt rules for its implementation and administration.