AL HB457

Allows Alabama individual taxpayers with legal residences in the state to claim an income tax deduction for state sales tax paid on tangible personal property used to retrofit their homes to resist damage from hurricanes, tornadoes, windstorms, or flooding.

Qualifying retrofits must meet or exceed standards set by the Insurance Institute for Business and Home Safety (Fortified for Safer Living/Existing Homes), International Code Council (ICC 600/500), or other wind-resistant features approved by the Alabama Residential and Energy Codes Board.

Maximum deduction of $1,500 is calculated by multiplying 4 percent of the purchase price of qualifying materials; items purchased with federal, state, or private grant funds are ineligible if grant funds are not included in taxpayer income.

Allows individual taxpayers to claim an income tax deduction for excess property and casualty insurance premiums paid on their legal residence, defined as the amount exceeding 5 percent of adjusted gross income, with a maximum annual credit of $1,250 and a five-year carryforward for unused credits.

Repeals Sections 40-18-15.4 and 40-18-15.5 from Act 2011-644 and becomes effective immediately upon passage and gubernatorial approval.