AL SB197

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

Qualified storm shelters must be capable of withstanding an EF5 tornado, meet Federal Emergency Management Agency minimum criteria for residential safe rooms, and be placed on the taxpayer's property with no other qualified shelter on the same lot.

Tax credit equals $3,000 or 50% of total qualified costs (whichever is less) for shelters on the taxpayer's own property; increases to $4,500 or 75% of costs (whichever is less) when installed on property owned by another person.

Tax credits are limited to $2,000,000 annually in aggregate, non-refundable and non-transferable, with application and certification required through the Alabama Emergency Management Agency.

The Alabama Emergency Management Agency must prepare annual reports documenting the number of shelters installed and tax credits claimed, with information exempt from confidentiality provisions and provided to the Legislature.