HB227 Summary

• Establishes an Alabama income tax credit of $3,000 or 50% of total costs (whichever is less) for taxpayers who construct, acquire, or install a qualified storm shelter at their primary residence.

• Defines a qualified storm shelter as a structure capable of withstanding an EF5 tornado, meeting Federal Emergency Management Agency minimum criteria, and attached to or located on the same lot as the primary residence.

• Limits the annual aggregate tax credit to $2,000,000 statewide, issued on a first-come, first-served basis by the Alabama Emergency Management Agency after taxpayer application and certification.

• Excludes federal restaurant revitalization grants received under the American Rescue Plan Act from Alabama state income taxation to the same extent they are exempt from federal income tax.

• Makes the tax credit effective January 1, 2022, through the 2025 tax year, unless extended by the Legislature.