Article: 50150

Overview

Alabama residents may deduct from gross income the lesser of 50% of the cost incurred or $3,000 for retrofitting or upgrading their primary residence to enhance resistance against wind or flood damage.

To qualify for the deduction, the taxpayer must obtain a certification in accordance with the provisions outlined in Chapter 31D, Title 27, Code of Alabama 1975, or as prescribed by the Alabama Residential and Energy Codes Board.

This deduction should be reported on line 10, page 2, of Alabama Form 40.

Reporting of Retrofit Home to Resist Wind/Flood Damage Deduction

Enter the full cost of the retrofit or upgrade in the Alabama data entry and the allowed amount will be calculated by the software. Follow the steps below:

1. Go to the State taxes section.
2. Click on the Review tab on the left-hand side.
3. Select I’d like to see the forms I’ve filled out or search for a form.
4. In the drop list, select Alabama.
5. Select the General tab.
6. Select 40 – Income Tax Return – Pg 2.
7. Enter the intended amount on line Retrofit home to resist wind/flood damage under Part II.
8. Click Save to apply changes.

Additional Information

See the Alabama Form 40 instructions for more information.