The Alabama Storm Shelter Tax Credit is a nonrefundable credit for the lesser of $3,000 or 50% of the cost of installation of a qualified storm shelter that meets FEMA's minimum criteria. The qualifying storm shelter must be installed at the taxpayer's primary residence. This credit is available to Alabama taxpayers during tax years 2022 through 2025.
The Alabama Storm Shelter Tax Credit must be certified in advance before it can be claimed on the Alabama tax return. During the year of installation, the taxpayer needs to submit to the Alabama Emergency Management Agency a copy of (a) the fully paid construction invoice, (b) the property's county tax record, and (c) a shelter/safe room specification sheet with an engineer seal dated 2021 or later. The AEMA will provide the taxpayer a certificate verifying approval to claim the credit on their Alabama tax return.
Being a nonrefundable credit, it can't reduce the taxpayer's tax liability to below zero, and the unused portion cannot be carried over to future years.
To enter this credit in the Alabama resident tax return in TaxSlayer ProWeb, from the Alabama state menu select:
- Credits
- Schedule OC
- Storm Shelter Credit - Enter the amount of the credit.
On Schedule OC, the credit appears is in Section B, Part V.
Additional Information:
Alabama Storm Shelter Tax Credit