To Create An Income Tax Credit For Qualified Storm Shelters.
Impact
The implementation of this bill is projected to influence state tax laws by introducing a credit that equals 50% of the total cost of constructing, acquiring, and installing a storm shelter, limited to a maximum of $3,000. Taxpayers can claim this credit against their state income tax, making it financially viable for individuals to invest in home safety. Furthermore, the maximum amount allocated for these credits annually is capped at $2 million, meaning that once this limit is reached, no further credits will be issued for that tax year. This limitation encourages timely applications for the credit among residents interested in building storm shelters.
Summary
House Bill 1366 introduces an income tax credit designed to encourage the construction and installation of qualified storm shelters for Arkansas residents. The bill defines a 'qualified storm shelter' as a structure capable of withstanding tornadoes rated up to a five on the Enhanced Fujita Scale. To qualify, the shelter must be either attached to or located on the same parcel as the taxpayer's primary residence. This tax incentive aims to enhance public safety by promoting the installation of reliable storm shelters in residential areas, which are crucial for protection during severe weather events.
Contention
Discussions surrounding HB 1366 highlight some points of contention regarding state expenditure and the prioritization of public resources for storm shelters. Proponents argue that providing tax credits for storm shelters is a necessary step in improving community preparedness for natural disasters, potentially reducing loss of life and property damage. However, opponents may express concerns over the state's fiscal responsibility, questioning whether allocating substantial tax benefits for private homeowners is a prudent use of government funds, especially in a budget-constrained environment. Furthermore, the bill's implementation timeline starting from January 1, 2025, raises questions about the immediate accessibility of these credits for residents who may require it sooner.
To Create Income Tax Incentives For Employer-based Dependent Care Assistance; And To Create An Income Tax Credit For Employer Payments Related To Dependent Care Assistance.
To Create An Income Tax Credit For Contributions To Certain Rural Hospital Organizations; And To Create The Helping Enhance Access To Rural Treatment (heart) Act.
To Amend The Wood Energy Products And Forest Maintenance Income Tax Credit; And To Allow An Income Tax Credit For Wood Energy Products And Forest Maintenance Expansion Projects.
To Provide Additional Funding For The Arkansas Port, Intermodal, And Waterway Development Grant Program Fund; And To Create A Waterways Investment Income Tax Credit.
To Create The Early Childhood Education Workforce Quality Incentive Act; And To Create Income Tax Credits For Certain Early Childhood Education Workers And For Eligible Business Childcare Expenses.