Alabama Tax Credit Available For New Storm Shelters
OPELIKA, Ala. – A $3,000 state tax credit will be available for homeowners who install a storm shelter after Jan. 1.
The program was spearheaded by state Rep. Joe Lovvorn of Auburn, and its meant to honor victims of the tornado that killed about two dozen people in Lee County in 2019. Lovvorn says the program has a cap of $2 million annually for three years.
Lee County Emergency Management Agency Director Rita Smith says that to be eligible, a shelter needs to be FEMA approved capable of withstanding an EF-5 tornado and built on the applicants property.
WBRC
Hulaco Receives Federal Grant For Storm Shelter
HULACO, Ala. – Hulcao is getting a new way to stay safe during future severe weather.
According to our news partners at the Decatur Daily, the community in southeast Morgan County should have an operational storm shelter in early 2022.
The North Central Alabama Regional Council of Governments announced Wednesday Hulaco has been awarded a $74,944 grant from the federal Pre-Disaster Mitigation program to help pay for the shelter.
The shelter will be erected at the Tri-County Volunteer Fire Department on Alabama 67. Ray Long, county commission chairman, said the fire department is responsible for a portion of the construction cost.
We are pleased to have received notification of the grant award and look forward to working with the local volunteer fire department and county officials to see this project through to completion, said Daniel Yurcaba, a NARCOG planner. The project should begin in the next few months and will be completed by the spring of 2022.
Yurcaba said the scope of the work includes the design and construction of the 90-person community safe room. He said it will include a restroom.
District 4 Commissioner Greg Abercrombie said the storm shelter in Hulaco, east of Eva and west of Arab, near the Cullman County line, is overdue.
Im glad the area is getting one and that the grant money became available, he said. Weve been needing one for a long time.
Currently, Morgan County and its municipalities have 19 public storm shelters.
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Alabama Storm Shelter Tax Credit
Qualified homeowners may be eligible for an Alabama Storm Shelter Tax Credit.
Alabama Emergency Management Agency, in conjunction with the Alabama Department of Revenue, is tasked with administering the provisions of the Alabama Storm Shelter Tax Credit Act.
What is the tax credit?
- The tax credit will equal up to three thousand dollars or 50 percent of the total cost of the construction, acquisition, and installation of the qualified storm shelter at the primary residence, whichever is less.
- The total costs for qualification of the tax credit will exclude any costs reimbursed or expected to be reimbursed by any other reimbursements, grants, or other government subsidies or incentives.
- The tax credit may not decrease a taxpayers tax liability to less than zero.
- If the tax liability of the taxpayer is less than the tax credit issued, the taxpayer may only utilize the amount of the credit that reduces the taxpayer liability to zero.
- The statewide tax credit is limited to a collective amount for all taxpayers of two million dollars annually.
To see what storm shelters qualify and more information about this tax credit, please visit:
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New Storm Shelters To Be Built Across Hale Co
HALE COUNTY, Ala. – The Hale County Emergency Management Agency has announced four new storm shelters will be built across the county thanks to a grant.
Each shelter will hold 50 people.
The locations are:
- Sawyerville Fire Dept.
The tornado shelters are paid for through a $209,000 Hazard Mitigation grant.
Two alternate sites, Friendship and Gallion Fire Department, will be considered if there is money left over.
Three tornadoes touched down in Hale County in March of 2021.
EMAs goal is to have the shelters in place before the beginning of tornado season in March.
Copyright 2021 WBRC. All rights reserved.
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Limestone County Al Ema
Alabama Emergency Management Agency, in conjunction with the Alabama Department of Revenue, is tasked with administering the provisions of the Alabama Storm Shelter Tax Credit Act.
What is the Tax Credit?
- The tax credit will equal up to three thousand dollars or 50 percent of the total cost of the construction, acquisition, and installation of the qualified storm shelter at the primary residence, whichever is less.
- The total costs for qualification of the tax credit will exclude any costs reimbursed or expected to be reimbursed by any other reimbursements, grants, or other government subsidies or incentives.
- The tax credit may not decrease a taxpayers tax liability to less than zero.
- If the tax liability of the taxpayer is less than the tax credit issued, the taxpayer may only utilize the amount of the credit that reduces the taxpayer liability to zero.
- The statewide tax credit is limited to a collective amount for all taxpayers of two million dollars annually.
Who Qualifies?
- Eligible Alabama state taxpayers who incur costs for the construction, acquisition, or installation of a qualified storm shelter at their primary residence in the state of Alabama will be eligible for an income tax credit for the storm shelter.
What documentation do I need?
- Shelter/safe room specification sheet with engineer seal dated 2021 or later
- Proof of primary residence
- Proof of shelter acquisition/installation cost
How do I submit my documents?
to submit documentation.
For more questions:
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As an example, Carson said a resident building a $12,000 shelter would receive a check for $4,000, and individuals building a cheaper shelter would have 75 percent of the cost reimbursed.
People need to be really careful because you cannot start the shelter until you get a letter back , Carson said. They cannot install any shelter until they get that letter back saying they have the grant. We had people that went ahead, did that and wanted to get reimbursed for it. That wont work. You have to wait to get the letter from FEMA.
All Lee County residents can apply for the funding, but once the local EMA gathers all the applications, individuals residing in high vulnerability areas will have precedence in the federal program.
My recommendation is the priority applicants be families and individuals in the highest areas of vulnerability identified in the 2018 Population Vulnerability analysis, Carson said. The tornado occurred in the areas of highest vulnerability in the county. It was Beauregard first, Smiths Station second and then, Beulah had the third highest vulnerability rating.
Carson emphasized families and individuals afflicted by severe injuries, fatalities and demolished dwellings from the March 3 tornadoes have top priority to apply for FEMAs shelter grant program as well.
Our biggest threat
Carson said the county EMA will assist residents interested in the shelter grant program.
Tax Credit Available For Homeowners Who Add A Storm Shelter In 2022
Taxpayers who add a storm shelter to their property in 2022 can get up to $3,000 in tax credit from the state of Alabama.
The Alabama Storm Shelter Tax Credit Act set aside $2 million to help taxpayers prepare their homes or property for severe weather. Eligible taxpayers who pay for construction, acquisition or installation of a qualified storm shelter at their primary residence can get 50% of their costs reimbursed through a tax credit, up to $3,000.
This is separate from costs reimbursed through other grants, subsidies and incentives. The Alabama Emergency Management Agency said it is currently working on a website to help provide additional information about the tax credit application and distribution processes.
It will be administering the credit with the Alabama Department of Revenue, though it will be the AEMA that handles collection information from the taxpayer and issuing a credit certificate to the taxpayer.
The state plans to continue offering the tax credit for the 2023, 2024 and 2025 tax years as well, with a possibility to continue beyond that if approved by the Legislature.
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How To Apply For The Alabama Tax Credit
Install a Qualified Storm Shelter
Ensure that the storm shelter youre installing is at your primary residence and meets or exceeds the most recent Federal Emergency Management Agency minimum criteria for designing, constructing, and operating residential storm shelters and safe rooms. Check FEMA P-320, March 2021, for more details.
Gather The Required Documents
Youll need to gather proof of the cost of construction and installation of your qualified storm shelter at your primary residence. Make sure that the applicant applying for the credit lives at the primary residence.
Submit Your Documents
Receive Tax Credit Certificate
Once your documents are verified, the Alabama Emergency Management Agency will issue you a tax credit certificate.
File Your Tax Credit With Your State
You can now file your tax credit certificate with their state income tax return.
Community Development Block Grant Funds
On December 3, 2003, the President signed into law the Tornado Shelters Act , which amends the Housing and Community Development Act of 1974, authorizing communities to use community development block grant funds to construct tornado-safe shelters in manufactured home parks.
To be eligible, a shelter must be located in a neighborhood or park that contains at least 20 units, consists predominately of low- and moderate-income households and is in a state where a tornado has occurred within the current year or last three years. The shelter must comply with tornado-appropriate safety and construction standards, be large enough to accommodate all members of the park/neighborhood and be located in a park/neighborhood that has a warning siren.
Community development block grant funds are funded through HUD.
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Need A Storm Shelter How To Apply For Fema Grants
In an effort to prevent storm damage and loss of life, FEMA makes it possible for tornado-prone areas to access grant money to cover storm-shelter costsoften paying as much as 75 percent of the structure.
Here are a few helpful things to know before beginning the application process, according to FEMA.gov:
Hazard Mitigation Grant Program Funds
FEMA’s Hazard Mitigation Grant Program assists states and local communities in implementing long-term hazard mitigation measures following a major disaster declaration. As of November 1, 2004, all communities must have an approved hazard mitigation plan in place to remain eligible for HMGP funding. HMGP grants can be used to fund projects that provide protection to both public as well as private properties.
See our Hazard Mitigation Grant Program , Pre-Disaster Mitigation Grants and Safe Rooms fact sheet for more information, including roles and responsibilities associated with the program and details regarding the HMGP and the construction of community and residential safe rooms.
Projects that are eligible under the HMGP grant include :
- Acquiring and demolishing or relocating structures from hazard-prone areas
- Retrofitting structures to protect them from floods, high winds, earthquakes or other natural hazards
- Constructing residential and community shelters in tornado-prone areas
FEMA can fund up to 75 percent of the eligible costs of each project. The state or local match does not have to be cash in-kind services or materials may be used. Federal funding under the HMGP is based on 7.5 percent of the federal funds spent on the Public and Individual Assistance programs for each disaster. Eligible applicants must apply for the HMGP through the State Hazard Mitigation Officer.
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Geneva County Residents Eligible For Storm Shelter Assistance
GENEVA, Ala. – Fall severe weather season is right around the corner and you need a plan to keep you and your family safe. People in Geneva County are getting financial help to stay safe during severe weather through a grant that will help them build a storm shelter.
FEMA awarded the county $112,500 for people to build shelters. Those who sign up for the grant will get a 75-percent reimbursement for construction costs. The last time the county was able to do this was in 2002.
The registration form asks for basic information like the home address and how many people live in the home and an approximate distance in feet of the proposed location of the safe room from the nearest exit of the home. Other required on the checklist is a property tax accessors report showing ownership and build date of home, Firmette of location of safe room installation, TOPO map of location, photos of the home, engineered drawings, an aerial map of the home with location of the safe room, parcel tax map, vendor estimate, design professionals estimate for foundation installation inspection and if possible city county map with location marked.
Brian Smith, Geneva County EMA Director, said funds will be given on a first come, first serve basis. To qualify, the shelter must be FEMA approved.
People can apply for assistance at the Geneva County Farm Center on November 1 at 6:00 p.m.
This grant is exclusively for homeowners in Geneva County.
Copyright 2021 WTVY. All rights reserved.
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Starting In 2022 You Can Get $3000 Tax Credit For Building A Storm Shelter
A vehicle is caught under downed trees along Lee Road 11 in Beauregard, Ala., Sunday, March 3, 2019, after a powerful storm system passed through the area. AP
Starting Jan. 1, 2022, Alabamians who install a storm shelter may be eligible for a tax credit of up to $3,000.
Under a bill sponsored by Rep. Joe Lovvorn, R-Auburn, eligible taxpayers can receive reimbursement for the cost of construction, acquisition or installation of a Federal Emergency Management Agency-approved storm shelter at their primary residence in the state. The shelter must be capable of withstanding an EF-5 tornado.
The tax credit is equal to $3,000 or 50% of the total cost of construction, whichever is less.
The state has $2 million annually set aside for the program, which will continue through 2025. Tax credits are available on a first-come, first-serve basis until the annual cap is met.
Alabama Emergency Management Agency, which will issue the credit certificate to qualified taxpayers, is in the process of creating a website where documentation can be submitted.
For more information on the tax credit, contact the Alabama Department of Revenue Individual Income Tax at 334-242-1170 Option #1.
If you purchase a product or register for an account through one of the links on our site, we may receive compensation.
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Hazard Mitigation Grant Program
States Role
- Manage the overall program within the State.
- Ensure that the FEMA Regional Director has approved the State Hazard Mitigation Plan and the States administrative plan for implementing the HMGP.
- Establish funding priorities, and select projects for funding based on those priorities.
- Solicit program interest and help potential applicants develop complete applications.
- Establish deadlines for applications.
- Provide applicants with technical assistance .
- Ensure that mitigation measures must be cost-effective, must benefit the disaster area, and must be consistent with the mitigation plans required under Section 322 of the Disaster Mitigation Act of 2000.
- Forward selected projects to FEMA for final eligibility review.
- Act as grantee, receiving funds from FEMA and disbursing them to successful applicants.
- Ensure that applicants and subgrantees adhere to all program and administrative requirements.
- Perform grantee responsibilities of monitoring the progress of projects and submitting quarterly reports to FEMA indicating the status and completion date for each approved project.
Community Applicant/Subgrantees Role
FEMAs Role
For more information about the HMGP application and eligibility requirements, please refer to the implementing regulations at 44 CFR 206.430.
The State Of Alabama To Begin Storm Shelter Tax Credit In 2022
Alabama Storm Shelter Tax Credit Act#2021-540
Alabama Emergency Management Agency, in conjunction with the Alabama Department of Revenue, is tasked with administering the provisions of the Alabama Storm Shelter Tax Credit Act.
AEMAs responsibility is to collect an annual information report filed by the taxpayer, which reflects the costs for construction, acquisition, or installation of the qualified storm shelter at the primary residence, along with additional information as required by the AEMA. After which, AEMA will issue a credit certificate to the taxpayer.
Alabama EMA is in the process of creating a website where documentation can be submitted.
For questions about documentation for the storm shelter tax credit, contact Alabama Emergency Management Agency at 280-2200.
For questions about processing the storm shelter tax credit, contact Alabama Department of Revenue Individual Income Tax at 242-1170 Option #1.
Talking Points
· Eligible taxpayers who incur costs for the construction, acquisition, or installation of a qualified storm shelter at their primary residence in the state of Alabama will be eligible for an income tax credit for the storm shelter.
· The tax credit will equal three thousand dollars or 50 percent of the total cost of the construction, acquisition, and installation of the qualified storm shelter at the primary residence, whichever is less.
· The statewide tax credit is limited to a collective amount for all taxpayers of two million dollars annually.
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We Build The Best Storm Shelters In Alabama
Valley Storm Shelters is a leading designer and manufacturer of storms shelters, and we are proud to be installing our high-quality shelters across Alabama. No matter where you live in Alabama, we can help you get the best shelter on the market. Our shelters are constructed to withstand 300 miles per hour ground speed winds, equivalent to an EF-5 tornado. Theyve also been tested by the Texas Tech Wind Science and Engineering Research Center. In addition, as a producer member of the American Tornado Shelter Association, you can trust that our aboveground shelters will hold up when extreme weather strikes.
Before you purchase a storm shelter, look around and do your research. Compare shelter companies, and make sure you check out our video demonstrations. We stand behind our shelters and think youll see precisely why were Americas top manufacturer.
Federal Housing Administration Mortgage
On January 14, 2000, as part of the Housing and Urban Development and the Federal Housing Administration’s continuing efforts to be responsive to public safety concerns, HUD began allowing borrowers to include windstorm shelters as an eligible work item for FHA 203 rehabilitation loans and FHA 203 financed new construction .
Shelters financed with FHA-insured mortgages must be constructed consistent with the guidelines presented in FEMA P-320, Taking Shelter from the Storm: Building a Safe Room for Your Home or Small Business.
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