AL HB27

Expands catastrophe savings account eligibility from a taxpayer's primary legal residence to any residential property owned by the taxpayer in Alabama

Adds two new qualified expense categories: annual cost of FORTIFIED endorsements to supplement insurance policies, and mitigation actions to reduce hurricane/flood/windstorm damage risk (including reroofing and FORTIFIED designation evaluation services)

Increases contribution limits by adding up to $15,000 for qualified catastrophe expenses beyond the deductible-based limits ($2,000 for deductibles ≤$1,000; lesser of $15,000 or 2x deductible for higher deductibles)

Self-insured individuals may contribute up to $250,000, not exceeding the property value

Effective October 1, 2026, applying to tax years beginning on or after January 1, 2027