AL SB396

Provides nonrefundable tax credits for private insurance carriers that write homeowners policies with wind and hail coverage in counties contiguous to the Gulf of Mexico and Mobile Bay, but only for properties previously insured through the Alabama Insurance Underwriting Association.

Allows a 20 percent credit against insurance premium taxes in Zone 4 and a 35 percent credit in Zones 1, 2, and 3, calculated on the premium written for the taxable year.

Limits the credit to one claim per structure per taxable year, regardless of the number of policies issued on that structure.

Requires licensed insurers claiming the credit to provide the Department of Insurance with information demonstrating eligibility and that premiums were not excluded from the insurer's gross income.

Applies to all new policies issued with an effective date after the act becomes effective, which occurs on the first day of the third month following passage and Governor approval.