Section 40-18-111, Code of Alabama 1975
Section 40-18-111 provides an income tax credit for eligible taxpayers who incur costs for the construction, acquisition, or installation of a qualified storm shelter at their primary residence in Alabama.
The Alabama Emergency Management Agency (AEMA) is the administering agency for the credit. Questions regarding eligibility and qualifications of the program should be directed sheltertaxcredit@ema.alabama.gov or 205-280-2200.
Additional Information about the Credit
Provisions of the Storm Shelter Tax Credit include:
- The credit may be applied against individual income tax.
- The credit is available through the 2028 tax year.
- Individuals seeking the credit must submit documentation to AEMA to verify the requirements of the credit have been met. AEMA will review the request, and, if approved, issue a tax credit certificate which should then be submitted to the Alabama Department of Revenue.
- The tax credit must be claimed in the tax year in which the taxpayer is issued a tax credit certificate.
- The credit is equal to the lesser of $3,000 or 50 percent of the total cost of construction, acquisition, an installation of a qualifying shelter.
- The credit is limited to an aggregate amount of $2,000,000 annually.
- The credit is not refundable nor transferable and may not be carried forward to subsequent tax years.
To utilize the credit on your individual income tax return, a credit claim request must be submitted via My Alabama Taxes prior to the filing of your return. Once approved, the credit must be reported on Schedule OC when filing your return.
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