Alabama Tax Credit

Alabama $3,000 Tax Credit info.

Starting January 1, 2022, Alabamians who install a storm shelter may be eligible for a tax credit of up to $3,000. Under a bill sponsored by Rep. Joe Lovvorn, R-Auburn, eligible taxpayers can receive reimbursement for the cost of construction, acquisition, or installation of a Federal Emergency Management Agency-approved storm shelter at their primary residence in the state. The shelter must be capable of withstanding an EF-5 tornado.

The tax credit is equal to $3,000 or 50% of the total construction cost, whichever is less. The state has $2 million annually set aside for the program, which will continue through 2025. Tax credits are available on a first-come, first-serve basis until the annual cap is met.

Alabama Emergency Management Agency, which will issue the credit certificate to qualified taxpayers, is in the process of creating a website where documentation can be submitted.

For more information on the tax credit, contact the Alabama Department of Revenue Individual Income Tax at 334-242-1170 Option #1.

Source: https://www.al.com/news/2021/12/starting-in-2022-you-can-get-3000-tax-credit-for-building-a-storm-shelter.html