Alabama 2024 Regular Session

Alabama House Bill HB380 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	~~HB380ENROLLED~~
	1	+	HB380INTRODUCED
2	2		Page 0
3	3		HB380
4		-	ZM94RRK-2
	4	+	ZM94RRK-1
5	5		By Representative Lovvorn
6	6		RFD: Ways and Means Education
7	7		First Read: 21-Mar-24
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12		-	5 ~~HB380 Enrolled~~
	12	+	5 ZM94RRK-1 03/21/2024 CMH (L)CMH 2024-1238
13	13		Page 1
14	14		First Read: 21-Mar-24
15		-	Enrolled, An Act,
	15	+	SYNOPSIS:
	16	+	Under existing law, there is an Alabama income
	17	+	tax credit for eligible taxpayers who incur costs for
	18	+	the construction, acquisition, or installation of a
	19	+	qualified storm shelter at their primary residence in
	20	+	the state. The tax credit is equal to the lesser of
	21	+	$3,000 or 50 percent of the total costs.
	22	+	Also under existing law, the tax credit shall
	23	+	continue through the 2025 tax year unless extended by
	24	+	act of the Legislature.
	25	+	This bill would extend the tax credit through
	26	+	the 2028 tax year.
	27	+	A BILL
	28	+	TO BE ENTITLED
	29	+	AN ACT
16	30		Relating to income tax credits; to amend Section
17	31		40-18-111, Code of Alabama 1975, to extend the existing tax
18	32		credit on the construction, acquisition, or installation of a
19	33		qualified storm shelter.
20	34		BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
21	35		Section 1. Section 40-18-111, Code of Alabama 1975, is
22	36		amended to read as follows:
23		-	"§40-18-111
24		-	(a) As used in this article, the following terms shall
25		-	have the following meanings:
26		-	(1) MANUFACTURED HOME. Any structure built to the
27		-	Manufactured Home Construction and Safety Standards which
28		-	displays a red certification label on the exterior of each
29		-	transportable section.
30		-	(2) PRIMARY RESIDENCE. Any manufactured home or single
31		-	family residence building that is the full-time legal
32		-	residence of the taxpayer and is used for purposes of the
33		-	taxpayer's income tax calculation.
34		-	(3) QUALIFIED STORM SHELTER. A storm shelter or safe
35		-	room to which all of the following apply:
36		-	a. The design is capable of withstanding an EF5
37		-	tornado.
38		-	b. The shelter or room is placed in service as an
39		-	attachment to the taxpayer's primary residence, or on the same
40		-	lot or parcel as the primary residence, and no other qualified
41		-	storm shelter is attached to the primary residence or on the
42		-	lot.
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70		-	28 HB380 ~~Enrolled~~
	64	+	28 HB380 INTRODUCED
71	65		Page 2
	66	+	amended to read as follows:
	67	+	"§40-18-111
	68	+	(a) As used in this article, the following terms shall
	69	+	have the following meanings:
	70	+	(1) MANUFACTURED HOME. Any structure built to the
	71	+	Manufactured Home Construction and Safety Standards which
	72	+	displays a red certification label on the exterior of each
	73	+	transportable section.
	74	+	(2) PRIMARY RESIDENCE. Any manufactured home or single
	75	+	family residence building that is the full-time legal
	76	+	residence of the taxpayer and is used for purposes of the
	77	+	taxpayer's income tax calculation.
	78	+	(3) QUALIFIED STORM SHELTER. A storm shelter or safe
	79	+	room to which all of the following apply:
	80	+	a. The design is capable of withstanding an EF5
	81	+	tornado.
	82	+	b. The shelter or room is placed in service as an
	83	+	attachment to the taxpayer's primary residence, or on the same
	84	+	lot or parcel as the primary residence, and no other qualified
	85	+	storm shelter is attached to the primary residence or on the
72	86		lot.
73	87		c. The shelter or room meets or exceeds the most recent
74	88		Federal Emergency Management Agency minimum criteria for the
75	89		design, construction, and operation of residential safe rooms.
76	90		d. The shelter or room is built on the site of the
77	91		taxpayer's primary residence or is manufactured offsite and
78	92		installed on the site of the taxpayer's primary residence.
79	93		(4) SINGLE FAMILY RESIDENCE BUILDING. A structure
80	94		designed according to the International Residential Codes or
81		-	its predecessor codes.
82		-	(b) An Alabama income tax credit is established for
83		-	eligible taxpayers who incur costs for the construction,
84		-	acquisition, or installation of a qualified storm shelter at
85		-	their primary residence in the state. The tax credit shall
86		-	equal three thousand dollars ($3,000) or 50 percent of the
87		-	total cost of the construction, acquisition, and installation
88		-	of the qualified storm shelter at the primary residence,
89		-	whichever is less. The total costs for purposes of the tax
90		-	credit calculation under this subsection shall exclude any
91		-	costs reimbursed or expected to be reimbursed by any other
92		-	entity including, but not limited to, insurance
93		-	reimbursements, grants, or other government subsidies or
94		-	incentives. The tax credit must be takenapplied for and
95		-	claimed in the tax year in which the taxpayer was issued a tax
96		-	credit certificate under subsection (f).
97		-	(c) The tax credit issued under this article may not
98		-	decrease a taxpayer's tax liability to less than zero. If the
99		-	tax liability of the taxpayer is less than the tax credit
100		-	issued under this article, the taxpayer may only utilize the
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128		-	56 HB380 ~~Enrolled~~
	122	+	56 HB380 INTRODUCED
129	123		Page 3
	124	+	designed according to the International Residential Codes or
	125	+	its predecessor codes.
	126	+	(b) An Alabama income tax credit is established for
	127	+	eligible taxpayers who incur costs for the construction,
	128	+	acquisition, or installation of a qualified storm shelter at
	129	+	their primary residence in the state. The tax credit shall
	130	+	equal three thousand dollars ($3,000) or 50 percent of the
	131	+	total cost of the construction, acquisition, and installation
	132	+	of the qualified storm shelter at the primary residence,
	133	+	whichever is less. The total costs for purposes of the tax
	134	+	credit calculation under this subsection shall exclude any
	135	+	costs reimbursed or expected to be reimbursed by any other
	136	+	entity including, but not limited to, insurance
	137	+	reimbursements, grants, or other government subsidies or
	138	+	incentives. The tax credit must be takenapplied for and
	139	+	claimed in the tax year in which the taxpayer was issued a tax
	140	+	credit certificate under subsection (f).
	141	+	(c) The tax credit issued under this article may not
	142	+	decrease a taxpayer's tax liability to less than zero. If the
	143	+	tax liability of the taxpayer is less than the tax credit
130	144		issued under this article, the taxpayer may only utilize the
131	145		amount of the credit that reduces the taxpayer liability to
132	146		zero. The tax credit is not refundable nor transferable and
133	147		may not be carried forward. A taxpayer applying for the tax
134	148		credit shall only apply for the tax credit for the year in
135	149		which the qualified storm shelter was acquired, constructed,
136	150		or installed, regardless of the tax liability of the taxpayer.
137	151		(d) The Department of Revenue shall grant the tax
138	152		credit against the state income tax that is due by the
139		-	taxpayer holding the tax credit certificate issued under
140		-	subsection (f) in the amount stated on the tax credit
141		-	certificate, subject to the limitations of subsection (c). The
142		-	department may audit and reassess any credit improperly
143		-	obtained by the taxpayer, in accordance with the Alabama
144		-	Taxpayers' Bill of Rights and Uniform Revenue Procedures Act
145		-	under Chapter 2A.
146		-	(e) The tax credit authorized by this article is
147		-	limited to an aggregate amount for all taxpayers of two
148		-	million dollars ($2,000,000) annually.
149		-	(f) Prior to claiming the income tax credit authorized
150		-	under subsection (b), the taxpayer shall file an annual
151		-	informational report in a manner prescribed by the Alabama
152		-	Emergency Management Agency, which includes information
153		-	reflecting the costs for construction, acquisition, or
154		-	installation of the qualified storm shelter at the primary
155		-	residence, along with additional information as required by
156		-	the Alabama Emergency Management Agency. Following the receipt
157		-	of all information required by this subsection, the Alabama
158		-	Emergency Management Agency shall issue a tax credit
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186		-	84 HB380 ~~Enrolled~~
	180	+	84 HB380 INTRODUCED
187	181		Page 4
	182	+	credit against the state income tax that is due by the
	183	+	taxpayer holding the tax credit certificate issued under
	184	+	subsection (f) in the amount stated on the tax credit
	185	+	certificate, subject to the limitations of subsection (c). The
	186	+	department may audit and reassess any credit improperly
	187	+	obtained by the taxpayer, in accordance with the Alabama
	188	+	Taxpayers' Bill of Rights and Uniform Revenue Procedures Act
	189	+	under Chapter 2A.
	190	+	(e) The tax credit authorized by this article is
	191	+	limited to an aggregate amount for all taxpayers of two
	192	+	million dollars ($2,000,000) annually.
	193	+	(f) Prior to claiming the income tax credit authorized
	194	+	under subsection (b), the taxpayer shall file an annual
	195	+	informational report in a manner prescribed by the Alabama
	196	+	Emergency Management Agency, which includes information
	197	+	reflecting the costs for construction, acquisition, or
	198	+	installation of the qualified storm shelter at the primary
	199	+	residence, along with additional information as required by
	200	+	the Alabama Emergency Management Agency. Following the receipt
	201	+	of all information required by this subsection, the Alabama
188	202		Emergency Management Agency shall issue a tax credit
189	203		certificate to the taxpayer seeking the credit. Tax credit
190	204		certificates shall be issued on a first come, first served
191	205		basis until the annual cap provided by subsection (e) is met.
192	206		In the event the reservations of tax credits equal the total
193	207		amount available for reservations during the tax year, all
194	208		eligible taxpayers with applications then awaiting approval or
195	209		thereafter submitted shall be notified in a manner as
196	210		prescribed by the Alabama Emergency Management Agency that no
197		-	additional tax credits shall be granted during that tax year
198		-	and, notwithstanding subsection (b)any provision of this
199		-	section to the contrary , shall be allowed to seek a tax credit
200		-	certificate in the next tax year, subject to the limitations
201		-	of subsection (c).
202		-	(g) The Alabama Emergency Management Agency shall
203		-	prepare a report detailing the number of qualified storm
204		-	shelters constructed, acquired, and installed and the amount
205		-	of tax credits claimed under this article. The information on
206		-	the report shall be consistent with the information required
207		-	under Section 40-1-50 and rules adopted by the Department of
208		-	Revenue. Information provided under this section is exempt
209		-	from the confidentiality provisions of Section 40-2A-10 and
210		-	shall be provided by the Alabama Emergency Management Agency
211		-	to the Legislature in accordance with Section 40-1-50 and
212		-	rules adopted by the Department of Revenue.
213		-	(h) The Alabama Emergency Management Agency may adopt
214		-	rules to implement and administer this article.
215		-	(i) The tax credit allowed under this section shall be
216		-	effective January 1, 2022, for the 2022 tax year, and shall
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244		-	112 HB380 ~~Enrolled~~
	238	+	112 HB380 INTRODUCED
245	239		Page 5
	240	+	prescribed by the Alabama Emergency Management Agency that no
	241	+	additional tax credits shall be granted during that tax year
	242	+	and, notwithstanding subsection (b)any provision of this
	243	+	section to the contrary , shall be allowed to seek a tax credit
	244	+	certificate in the next tax year, subject to the limitations
	245	+	of subsection (c).
	246	+	(g) The Alabama Emergency Management Agency shall
	247	+	prepare a report detailing the number of qualified storm
	248	+	shelters constructed, acquired, and installed and the amount
	249	+	of tax credits claimed under this article. The information on
	250	+	the report shall be consistent with the information required
	251	+	under Section 40-1-50 and rules adopted by the Department of
	252	+	Revenue. Information provided under this section is exempt
	253	+	from the confidentiality provisions of Section 40-2A-10 and
	254	+	shall be provided by the Alabama Emergency Management Agency
	255	+	to the Legislature in accordance with Section 40-1-50 and
	256	+	rules adopted by the Department of Revenue.
	257	+	(h) The Alabama Emergency Management Agency may adopt
	258	+	rules to implement and administer this article.
	259	+	(i) The tax credit allowed under this section shall be
246	260		effective January 1, 2022, for the 2022 tax year, and shall
247	261		continue through the 2025 2028 tax year, unless continued by
248	262		an act of the Legislature."
249	263		Section 2. This act shall become effective on October
250	264		1, 2024.
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254		-	116 HB380 Enrolled
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256		-	1, 2024.
257		-	________________________________________________
258		-	Speaker of the House of Representatives
259		-	________________________________________________
260		-	President and Presiding Officer of the Senate
261		-	House of Representatives
262		-	I hereby certify that the within Act originated in and
263		-	was passed by the House 09-Apr-24.
264		-	John Treadwell
265		-	Clerk
266		-	Senate 30-Apr-24 Passed
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