HB380ENROLLED
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HB380
ZM94RRK-2
By Representative Lovvorn
RFD: Ways and Means Education
First Read: 21-Mar-24
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First Read: 21-Mar-24
Enrolled, An Act,
Relating to income tax credits; to amend Section
40-18-111, Code of Alabama 1975, to extend the existing tax
credit on the construction, acquisition, or installation of a
qualified storm shelter.
BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
Section 1. Section 40-18-111, Code of Alabama 1975, is
amended to read as follows:
"ยง40-18-111
(a) As used in this article, the following terms shall
have the following meanings:
(1) MANUFACTURED HOME. Any structure built to the
Manufactured Home Construction and Safety Standards which
displays a red certification label on the exterior of each
transportable section.
(2) PRIMARY RESIDENCE. Any manufactured home or single
family residence building that is the full-time legal
residence of the taxpayer and is used for purposes of the
taxpayer's income tax calculation.
(3) QUALIFIED STORM SHELTER. A storm shelter or safe
room to which all of the following apply:
a. The design is capable of withstanding an EF5
tornado.
b. The shelter or room is placed in service as an
attachment to the taxpayer's primary residence, or on the same
lot or parcel as the primary residence, and no other qualified
storm shelter is attached to the primary residence or on the
lot.
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lot.
c. The shelter or room meets or exceeds the most recent
Federal Emergency Management Agency minimum criteria for the
design, construction, and operation of residential safe rooms.
d. The shelter or room is built on the site of the
taxpayer's primary residence or is manufactured offsite and
installed on the site of the taxpayer's primary residence.
(4) SINGLE FAMILY RESIDENCE BUILDING. A structure
designed according to the International Residential Codes or
its predecessor codes.
(b) An Alabama income tax credit is established for
eligible taxpayers who incur costs for the construction,
acquisition, or installation of a qualified storm shelter at
their primary residence in the state. The tax credit shall
equal three thousand dollars ($3,000) or 50 percent of the
total cost of the construction, acquisition, and installation
of the qualified storm shelter at the primary residence,
whichever is less. The total costs for purposes of the tax
credit calculation under this subsection shall exclude any
costs reimbursed or expected to be reimbursed by any other
entity including, but not limited to, insurance
reimbursements, grants, or other government subsidies or
incentives. The tax credit must be takenapplied for and
claimed in the tax year in which the taxpayer was issued a tax
credit certificate under subsection (f).
(c) The tax credit issued under this article may not
decrease a taxpayer's tax liability to less than zero. If the
tax liability of the taxpayer is less than the tax credit
issued under this article, the taxpayer may only utilize the
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issued under this article, the taxpayer may only utilize the
amount of the credit that reduces the taxpayer liability to
zero. The tax credit is not refundable nor transferable and
may not be carried forward. A taxpayer applying for the tax
credit shall only apply for the tax credit for the year in
which the qualified storm shelter was acquired, constructed,
or installed, regardless of the tax liability of the taxpayer.
(d) The Department of Revenue shall grant the tax
credit against the state income tax that is due by the
taxpayer holding the tax credit certificate issued under
subsection (f) in the amount stated on the tax credit
certificate, subject to the limitations of subsection (c). The
department may audit and reassess any credit improperly
obtained by the taxpayer, in accordance with the Alabama
Taxpayers' Bill of Rights and Uniform Revenue Procedures Act
under Chapter 2A.
(e) The tax credit authorized by this article is
limited to an aggregate amount for all taxpayers of two
million dollars ($2,000,000) annually.
(f) Prior to claiming the income tax credit authorized
under subsection (b), the taxpayer shall file an annual
informational report in a manner prescribed by the Alabama
Emergency Management Agency, which includes information
reflecting the costs for construction, acquisition, or
installation of the qualified storm shelter at the primary
residence, along with additional information as required by
the Alabama Emergency Management Agency. Following the receipt
of all information required by this subsection, the Alabama
Emergency Management Agency shall issue a tax credit
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Emergency Management Agency shall issue a tax credit
certificate to the taxpayer seeking the credit. Tax credit
certificates shall be issued on a first come, first served
basis until the annual cap provided by subsection (e) is met.
In the event the reservations of tax credits equal the total
amount available for reservations during the tax year, all
eligible taxpayers with applications then awaiting approval or
thereafter submitted shall be notified in a manner as
prescribed by the Alabama Emergency Management Agency that no
additional tax credits shall be granted during that tax year
and, notwithstanding subsection (b)any provision of this
section to the contrary , shall be allowed to seek a tax credit
certificate in the next tax year, subject to the limitations
of subsection (c).
(g) The Alabama Emergency Management Agency shall
prepare a report detailing the number of qualified storm
shelters constructed, acquired, and installed and the amount
of tax credits claimed under this article. The information on
the report shall be consistent with the information required
under Section 40-1-50 and rules adopted by the Department of
Revenue. Information provided under this section is exempt
from the confidentiality provisions of Section 40-2A-10 and
shall be provided by the Alabama Emergency Management Agency
to the Legislature in accordance with Section 40-1-50 and
rules adopted by the Department of Revenue.
(h) The Alabama Emergency Management Agency may adopt
rules to implement and administer this article.
(i) The tax credit allowed under this section shall be
effective January 1, 2022, for the 2022 tax year, and shall
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effective January 1, 2022, for the 2022 tax year, and shall
continue through the 2025 2028 tax year, unless continued by
an act of the Legislature."
Section 2. This act shall become effective on October
1, 2024.
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1, 2024.
________________________________________________
Speaker of the House of Representatives
________________________________________________
President and Presiding Officer of the Senate
House of Representatives
I hereby certify that the within Act originated in and
was passed by the House 09-Apr-24.
John Treadwell
Clerk
Senate 30-Apr-24 Passed
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