HB276 Summary

• Establishes an Alabama income tax credit for eligible taxpayers who construct, acquire, or install a qualified storm shelter at their primary residence, effective January 1, 2021 through the 2024 tax year.

• Tax credit equals $3,000 or 50 percent of total qualified storm shelter costs (whichever is less) for taxpayers installing shelters on their own property, and $4,500 or 75 percent of costs (whichever is less) when installing on another person's property.

• Qualified storm shelters must be capable of withstanding an EF5 tornado, meet Federal Emergency Management Agency minimum criteria for residential safe rooms, and be attached to or located on the same lot as the taxpayer's primary residence.

• Total annual tax credits are capped at $2,000,000, distributed on a first-come, first-served basis after Alabama Emergency Management Agency certification and approval.

• Tax credits are non-refundable and non-transferable, cannot reduce tax liability below zero, and must be claimed in the tax year the shelter is placed into service.