SB254 Summary

• Amends Section 27-1-24.1 of the Code of Alabama to establish the Alabama Coastal Insurance Reform Act of 2014, providing tax credits for private property insurance carriers writing homeowners policies with wind and hail coverage in coastal Alabama counties.

• Allows insurance carriers to claim nonrefundable credits of 20 percent of insurance premium taxes for Zone 4 properties (B4, B5, M4, M5) and 35 percent for Zones 1, 2, and 3 properties (Gulf Front, B1, B2, B3, M1, M2, M3), limited to properties previously insured through the Alabama Insurance Underwriting Association.

• Caps total annual tax credits available at $50,000 and restricts each structure to claiming the credit only once per taxable year regardless of the number of policies written on that structure.

• Deletes the previous requirement that insurance carriers provide homeowners premiums at least 12 percent less than Alabama Wind Pool Plan rates to qualify for the credit.

• Becomes effective on the first day of the third month following passage and approval by the Governor.