Stricken language would be deleted from and underlined language would be added to present law.
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State of Arkansas 1
95th General Assembly A Bill 2
Regular Session, 2025 HOUSE BILL 1366 3
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By: Representatives Ennett, Hudson 5
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For An Act To Be Entitled 8
AN ACT TO CREATE AN INCOME TAX CREDIT FOR QUALIFIED 9
STORM SHELTERS; AND FOR OTHER PURPOSES. 10
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Subtitle 13
TO CREATE AN INCOME TAX CREDIT FOR 14
QUALIFIED STORM SHELTERS. 15
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BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS: 17
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SECTION 1. Arkansas Code Title 26, Chapter 51, Subchapter 5, is 19
amended to add an additional section to read as follows: 20
26-51-518. Qualified storm shelter. 21
(a) As used in this section: 22
(1) "Primary residence" means a single -family residence that is 23
the full-time legal residence of a taxpayer and is used for purposes of the 24
taxpayer's income tax calculation under this chapter; 25
(2) "Qualified storm shelter" means a storm shelter or safe room 26
that: 27
(A) Has a design that is capable of withstanding a tornado 28
that is rated as a five (5) on the Enhanced Fujita Scale; 29
(B) Is placed in service as an attachment to the 30
taxpayer's primary residence or on the same lot or parcel as the taxpayer's 31
primary residence, and no other qualified storm shelter is attached to the 32
taxpayer's primary residence or on the same lot or parcel as the taxpayer's 33
primary residence; 34
(C) Meets or exceeds the most recent minimum criteria 35
established by the Federal Emergency Management Agency for the design, 36 HB1366
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construction, and operation of residential safe rooms; and 1
(D) Is built on the site of the taxpayer's primary 2
residence or is manufactured offsite and installed on the site of the 3
taxpayer's primary residence; and 4
(3) "Single-family residence" means a structure designed 5
according to the International Residential Codes or its predecessor codes. 6
(b) There is allowed an income tax credit against the income tax 7
imposed by this chapter in an amount equal to the lesser of: 8
(1) Fifty percent (50%) of the total cost of the construction, 9
acquisition, and installation of a qualified storm shelter at the primary 10
residence of the taxpayer during the tax year, excluding any costs reimbursed 11
or expected to be reimbursed by another entity, including without limitation 12
insurance reimbursement, grants, or other government subsidies or incentives; 13
or 14
(2) Three thousand dollars ($3,000). 15
(c) The amount of the income tax credit under this section that may be 16
claimed by the taxpayer in a tax year shall not exceed the amount of income 17
tax due by the taxpayer. 18
(d)(1) The total amount of income tax credits that may be awarded 19
under this section shall not exceed two million dollars ($2,000,000) for all 20
taxpayers in a calendar year. 21
(2) Before claiming an income tax credit under this section, a 22
taxpayer shall file an informational report in the manner prescribed by the 23
Division of Emergency Management that includes information showing: 24
(A) The costs for construction, acquisition, and 25
installation of a qualified storm shelter at the primary residence of the 26
taxpayer; and 27
(B) Any additional information required by the division. 28
(3)(A) Upon receipt of an informational report containing the 29
information required under this subsection, the division shall issue an 30
income tax credit certificate to the taxpayer submitting the informational 31
report. 32
(B) Income tax credit certificates issued under 33
subdivision (d)(3)(A) of this section shall be issued on a first -come, first-34
served basis until the maximum amount of income tax credits stated in 35
subdivision (d)(1) of this section is met. 36 HB1366
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(C) If the maximum amount of income tax credits stated in 1
subdivision (d)(1) of this section is met: 2
(i) The division shall notify each taxpayer who has 3
submitted an informational report under this subsection but who will not 4
receive an income tax credit certificate because the maximum amount stated in 5
subdivision (d)(1) of this section has been met that no additional income tax 6
credit certificates will be issued for the tax year; and 7
(ii) Notwithstanding any other restrictions stated 8
in this section, each taxpayer notified under subdivision (d)(3)(C)(i) of 9
this section is allowed to resubmit his or her informational report under 10
this subsection in the next tax year. 11
(e)(1) The division shall prepare an annual report detailing the 12
number of qualified storm shelters constructed, acquired, and installed and 13
the amount of income tax credits allowed under this section during the 14
previous calendar year. 15
(2) The report required under subdivision (e)(1) of this section 16
shall: 17
(A) Contain information that is consistent with any rules 18
adopted by the Department of Finance and Administration; and 19
(B) Be submitted to the Legislative Council or, if the 20
General Assembly is in session, the Joint Budget Committee. 21
(f) The division and the department may adopt rules to implement and 22
administer this section. 23
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SECTION 2. EFFECTIVE DATE. Section 1 of this act is effective for tax 25
years beginning on or after January 1, 2025. 26
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