A new tax credit just went into effect for Alabamians who have a storm shelter installed on or after January 1, 2022. The tax credit will be available until 2025 unless extended by the Alabama Legislature.
To qualify for the tax credit the following guidelines must be met:
- Must be a qualified shelter.
- The design is capable of withstanding an EF5 tornado.
- Meets or exceeds the most recent Federal Emergency Management Agency minimum criteria for the design, construction, and operation of residential safe rooms.
- Is placed in service as an attachment to the taxpayer’s primary residence, or on the same lot or parcel as the primary residence where no other storm shelter previously exists.
- 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.
The tax credit will equal up to 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 qualification of the tax credit will exclude any costs reimbursed or expected to be reimbursed by any other reimbursements, grants, or other government subsidies or incentives.
The statewide tax credit is limited to a collective amount for all taxpayers of two million dollars ($2,000,000) annually.
For more information on how to apply for the storm shelter tax credit, call 205-280-2200 or visit the AEMA (Alabama Emergency Management Agency)