Living in Alabama... we aren't strangers to tornado warnings and thanks to the Alabama Storm Shelter Tax Credit, installing a tornado shelter for your primary residence just got more affordable.

 

 

What Is the Storm Shelter Tax Credit?

Effective from January 1, 2022, and now extended through the 2028 tax year, Alabama offers a state income tax credit covering 50% of your storm shelter installation cost, up to $3,000, whichever is less. The statewide annual cap is $2 million, and credits are issued first‑come, first‑served.

 

 

How Much Can You Save?

If your tornado shelter costs $5000, you can get a credit of $2500. If your tornado shelter costs $8500, your credit will be capped at $3000.

 

Remember, this is a non‑refundable credit which means it cannot reduce your tax liability below zero, nor can it roll over to future years.

 

 

Which Shelters Qualify?

Your tornado shelters, whether above‑ground steel or concrete tornado shelters or underground tornado shelters, must meet up‑to‑date standards:

 

• Be your primary residence

• Be capable of withstanding an EF‑5 tornado

• Meet or exceed FEMA P‑320 (2021), P‑361 (2021), and ICC 500 (2020) standardsartinstormshelters.com+7

 

Documentation must include:

• Engineering‑sealed spec sheet from 2021 or newer

• Zero‑balance installation invoice

• County tax records proving residency

• Documentation must be submitted to Alabama EMA within the same calendar year that the shelter was installed.

 

 

How to Apply For The Tax Credit?

1) Install a qualifying storm shelter at your primary residence.

2) Collect documentation: spec sheet, paid invoice, county tax record.

3) File with AEMA during the same year of installation.

4) Receive a tax credit certificate... EMA typically requires ~1 week for approval

5) Submit certificate to MyAlabamaTaxes (ALDOR) before filing state income taxes

6) Claim the credit when filing your AL State return (Schedule OC)

 

 

Real Experience from an Alabama Homeowner

 

“Mine was $4,750 to install so the credit was worth $2,375. However, it isn't refundable, so I really only used about $2,350 of it.”

 

They also noted delays in spec‑sheet approvals, but once approved, EMA turned around certificates in about a week .

 

 

Besides Credit: Why You Need One

Tornadoes in Alabama can reach EF‑5 strength. That would cause complete obliteration to anything in its path. A compliant underground tornado shelter or reinforced concrete safe room will keep you alive.

 

 

Key Things to Keep in Mind

• Credit: 50%, up to $3,000 per primary residence

• Qualify: Must adhere to FEMA P‑320, P‑361, ICC 500 and installed by year‑end.

• Credit Type: Non‑refundable, no carryover.

• Deadline: File with EMA same calendar year; capped at $2M yearly.

• Timeline: EMA review ~1 week; ALDOR pre‑certification ~2 day

 

 

Your Next Steps

1) Plan ahead... time your install to file documentation within the same calendar year.

2) Get engineer‑sealed specs... from reputable shelter manufacturers.

3) Pay in full before filing... invoices must show zero balance.

4) Follow up promptly... EMA and ALDOR can have tight timelines.

 

With the state credit and the incredible safety of a certified storm shelter, now’s the time to protect your loved ones... and your wallet... during tornado season.