AR HB1366

Creates an Arkansas income tax credit equal to 50% of costs for construction, acquisition, and installation of a qualified storm shelter, up to a maximum credit of $3,000

Qualified storm shelters must withstand an EF-5 tornado, meet FEMA minimum criteria for residential safe rooms, and be attached to or on the same lot as the taxpayer's primary residence

Total credits capped at $2,000,000 per calendar year for all taxpayers, with certificates issued on a first-come, first-served basis by the Division of Emergency Management

Costs reimbursed by insurance, grants, or other government subsidies are excluded from the credit calculation, and credits cannot exceed the taxpayer's income tax liability

Effective for tax years beginning on or after January 1, 2025