AL HB602

Allows individual taxpayers a state income tax credit for costs incurred to retrofit their primary residence to resist damage from hurricanes, tornadoes, rising floodwater, or catastrophic windstorm events, effective for tax years beginning in 2009.

Establishes three different credit levels based on location: coastal counties (Gulf of Mexico and Mobile Bay border) receive 25% of retrofitting costs up to $1,500; inland counties receive 25% of repair/replacement/upgrade costs up to $1,500; and state or federally designated disaster areas receive 50% of costs up to $3,000.

Requires eligible costs to meet or exceed standards set by the Institute for Business and Home Safety's Fortified standards, the International Code Council's ICC 600, or codes approved by the Alabama Residential and Energy Codes Board.

Excludes from credit eligibility any costs paid with grant funds that are not included in the taxpayer's taxable income, and prohibits credits for ordinary repairs or replacements of existing items.

For taxpayers in designated disaster areas, the credit is available for a period beginning on the disaster designation date and extending no more than three years after the formal lifting of the designation.