FISCAL NOTE

House Bill 227 as introduced will decrease income tax receipts to the Education Trust Fund, by an undetermined amount, but no more than $2 million annually, by providing a non-refundable and non-transferable income tax credit to eligible taxpayers for the construction, acquisition, or installment of a qualified storm shelter or safe room. The tax credit for a taxpayer who constructs, acquires, or installs a storm shelter as an attachment to their primary residence, or on the same lot or parcel as the primary residence, is the lesser of $3,000 or 50% of the cost. This bill caps the aggregate amount of the tax credits at $2 million annually and limits the tax credit to tax years 2022 through 2025, unless extended by an act of the Legislature.

According to the Department of Revenue, this bill will increase the administrative obligations of the Department by a small, undetermined amount to develop the forms in which taxpayers may submit documentation to claim the tax credit issued under the provisions of this bill. This bill will also increase the administrative obligations of the Alabama Emergency Management Agency, by an undetermined amount, by requiring the agency to issue tax credit certificates and prepare reports detailing the number of qualified storm shelters constructed, acquired, and installed and the amount of the tax credits claimed under this bill.