Budget & Taxes (Income Tax)

HB 27 expands Alabama's catastrophe savings accounts to cover additional expenses beyond insurance deductibles, including storm-resistant home upgrades (like reroofing) and FORTIFIED endorsement costs for hurricane-prone properties. It sets contribution limits based on a homeowner's deductible amount - capping total contributions at $15,000 or less for most residents, and up to $250,000 for self-insured homeowners. The bill maintains tax benefits, allowing deductions for contributions and exempting account interest from state income tax, while requiring distributions to cover only eligible disaster-related costs. This directly affects Alabama homeowners with residential properties in hurricane-risk areas who use these accounts to prepare for or recover from severe storms.

HB 28 would create a state income tax credit for Alabama restaurants that donate oyster shells to approved recycling programs. Restaurants can claim up to $2,000 per year (based on $1 for every 50 pounds of shells donated), with a total annual cap of $100,000 across all participating businesses. Credits are awarded on a first-come, first-served basis and are only available for tax years 2026 through 2030. The Alabama Department of Revenue will collaborate with conservation officials to designate eligible recycling programs.