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 to the Arkansas Code, defining "qualified storm shelter" and outlining the criteria that such shelters must meet, including the ability to withstand a tornado rated as a five on the Enhanced Fujita Scale and compliance with FEMA's minimum design standards. Taxpayers can claim a credit equal to the lesser of 50% of the total costs incurred or $3,000, with the total credits awarded capped at $2 million per calendar year.

To claim the credit, taxpayers must submit an informational report to the Division of Emergency Management detailing the costs associated with the storm shelter. The division will issue tax credit certificates on a first-come, first-served basis until the cap is reached. Additionally, the division is tasked with preparing an annual report on the number of storm shelters constructed and the credits awarded. The bill is set to take effect for tax years beginning on or after January 1, 2025.