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HB 1366

TO CREATE AN INCOME TAX CREDIT FOR QUALIFIED STORM SHELTERS.

2025 Regular Session Introduced by Denise Ennett and 1 co-sponsor

House Bill 1366 proposed a tax credit up to $3,000 for homeowners installing storm shelters, enhancing safety against severe weather while capping credits at $2 million annually.

Died in House Committee at Sine Die adjournment.
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Bill Summary · HB 1366

Summary of House Bill 1366: Income Tax Credit for Qualified Storm Shelters

Purpose and Intent

House Bill 1366 (HB 1366) was introduced in the Arkansas General Assembly with the intent to provide financial relief to homeowners who invest in storm shelters. The bill aimed to create a non-refundable income tax credit for the construction, acquisition, and installation of storm shelters at primary residences, thereby enhancing public safety in the face of severe weather events.

Key Provisions

  • Tax Credit Amount: The bill proposed a tax credit equal to the lesser of:

    • 50% of the total cost of the storm shelter, or
    • $3,000.

  • Eligibility Criteria for Storm Shelters: To qualify for the tax credit, a storm shelter must:

    • Be built or installed on the site of the taxpayer's primary residence.
    • Be capable of withstanding an EF-5 tornado.
    • Meet or exceed the minimum criteria established by the Federal Emergency Management Agency (FEMA).

  • Application Process: Taxpayers wishing to claim the credit were required to:

    • File an informational report with the Arkansas Division of Emergency Management (ADEM) detailing the costs associated with the storm shelter.
    • Receive an income tax credit certificate from ADEM on a first-come, first-served basis until the annual cap is reached.

  • Annual Cap: The total amount of income tax credits issued to all taxpayers in a calendar year was capped at $2,000,000.

  • Implementation Timeline: The tax credit was set to be effective for income tax years beginning on or after January 1, 2025.

Affected Parties

  • Homeowners: Eligible taxpayers who install qualified storm shelters at their primary residences would benefit from the tax credit.
  • State Agencies: The Arkansas Department of Finance and Administration (DFA) and ADEM would be responsible for administering the program, including verifying compliance and issuing tax credit certificates.

Fiscal Impact

  • The bill was projected to reduce general revenue by $2 million in FY2026 due to the tax credits issued.
  • Implementation costs for updating computer programs and tax forms were estimated at $14,000.

Procedural Aspects

  • The bill was filed on February 3, 2025, and was read and referred to the Committee on Revenue & Taxation.
  • Unfortunately, HB 1366 died in the House Committee at Sine Die adjournment on May 5, 2025, meaning it did not advance to a vote or further legislative action.

Conclusion

While HB 1366 aimed to promote safety through financial incentives for storm shelter installation, it ultimately did not progress through the legislative process. The proposed tax credit would have provided significant support to homeowners in preparing for severe weather, reflecting a proactive approach to disaster preparedness in Arkansas.

Compiled from official sources — confirm details with the bill’s official record.

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