HB380 Summary

• Extends Alabama's income tax credit for qualified storm shelter construction, acquisition, or installation at primary residences through the 2028 tax year (previously scheduled to expire after 2025).

• Tax credit equals $3,000 or 50 percent of total qualified storm shelter costs, whichever is less, excluding any costs reimbursed by insurance, grants, or government subsidies.

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

• Annual aggregate tax credit cap is $2,000,000 for all taxpayers combined, issued on a first-come, first-served basis by the Alabama Emergency Management Agency.

• Effective October 1, 2024, with credits remaining non-refundable, non-transferable, and non-carryforward.