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Alabamians can receive tax credits for storm shelters beginning in 2022


MONTGOMERY, Ala. – Effective Jan. 1, 2022, home owners in Alabama can receive up to $3,000 in tax credits for new installations of storm shelters capable of holding up against Mother Nature’s toughest threats.

The Alabama Emergency Management Agency (AEMA) along with the Alabama Department of Revenue have provided residents in Alabama to recoup up to $3,000 if you install a FEMA-accepted shelter that passes AEMA inspection. If the shelter meets the standard requirements, the taxpayer will get a credit certificate.

The credit will equal either the $3,000 amount or 50% of the cost of construction and acquisition of the shelter, whichever is less.

The collective credit amount for the entire state is limited to $2 million annually and the bill, which was introduced by Rep. Joe Lovvorn of Auburn, will go through the 2025 tax year unless discontinued by an act of legislature.

These tax credit opportunities will be “first-come, first-serve” until the annual cap is met.

For more information about processing the storm shelter tax credit, contact Alabama Department of Revenue Individual Income Tax at (334) 242-1170, Option #1.

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