Alabama Emergency Management Agency, in conjunction with the Alabama Department of Revenue, is tasked with administering the provisions of the Alabama Storm Shelter Tax Credit Act.
What is the tax credit?
- 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 tax credit 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, the taxpayer may only utilize the amount of the credit that reduces the taxpayer liability to zero.
- The statewide tax credit is limited to a collective amount for all taxpayers of two million dollars ($2,000,000) annually.
What storm shelters qualify?
- Shelters that meet FEMA P-320 (March 2021), FEMA P-361 (April 2021) and ICC 500 (2020) standards.
- Shelters installed on/after January 1, 2022.
- Eligible Alabama state taxpayers who incur costs for the construction, acquisition, or installation of a qualified storm shelter at their primary residence in the state of Alabama will be eligible for an income tax credit for the storm shelter.
What documentation do I need?
- Shelter/safe room specification sheet with engineer seal dated 2021 or later
- Proof of primary residence (County property tax record)
- Proof of shelter acquisition/installation cost (invoice with a zero balance)
How do I submit my documents?
Click here to submit documentation.
If you would like to verify your storm shelter meets the most recent FEMA requirements – FEMA P-320 (March 2021), FEMA P-361 (April 2021) and ICC 500 (2020) – before purchase of a shelter, you can send your complete set of engineered drawings to email@example.com
For more questions:
For more information on how to apply for the storm shelter tax credit, call 205-280-2200
For more information on how the tax credit will be applied to your taxes, click the link below.