Bill > HB1366

This bill creates a new state income tax credit for Arkansas taxpayers who install qualified storm shelters at their primary residences. The bill defines a "qualified storm shelter" as a structure capable of withstanding an EF5 tornado, attached to or located on the same lot as the primary residence, meeting Federal Emergency Management Agency (FEMA) safety standards, and either built or manufactured and installed on-site. Taxpayers can claim a tax credit equal to 50% of the storm shelter's construction, acquisition, and installation costs, up to a maximum of $3,000, with the total credit amount limited to $2 million per calendar year across all taxpayers. To claim the credit, individuals must first submit an informational report to the Division of Emergency Management, which will issue tax credit certificates on a first-come, first-served basis. The division is also required to prepare an annual report detailing the number of storm shelters and total credits issued, which will be submitted to the Legislative Council. The tax credit will become effective for tax years beginning on or after January 1, 2025, providing an incentive for Arkansas homeowners to invest in storm safety infrastructure.

Budget and Finance

https://arkleg.state.ar.us/Bills/Detail?id=hb1366&ddBienniumSession=2025%2F2025R