(a) Insurance carriers providing full property and casualty coverage, to specifically include wind and hail coverage, to property owners within the areas defined in Section 27-1-24, including any portion of the area as it may be expanded from time to time pursuant to Section 27-1-27, but only on properties that as of the time of writing are insured for wind coverage through the Alabama Insurance Underwriting Association, may claim as a nonrefundable credit against the insurance premium tax imposed by Chapter 4A of this title, in an amount equal to 20 percent of the insurance premium tax otherwise due on the premium written for the property owners for the taxable year in Zones B4, B5, M4, M5, or successor zones; and 35 percent of the insurance premium tax otherwise due on the premium written for the property owners for the taxable year in Zones Gulf Front, B1, B2, B3, M1, M2, M3, or successor zones. The aggregate amount of all tax credits in any tax year that may be claimed by insurance carriers pursuant to this section shall not exceed fifty thousand dollars ($50,000).
(b) The credit allowed by this section is available only to an insurer licensed or authorized to do business in this state with respect to a property and casualty insurance policy providing full coverage as defined in subsection (a).
(c) A licensed insurer who claims the credit allowed by this section shall provide information required by the Department of Insurance to demonstrate that the taxpayer is eligible for the credit and that the amount paid for premiums for which the credit is claimed was not excluded from the licensed insurer's gross income for the taxable year.
The department shall establish a process for which licensed insurers may make application for a tax credit certificate in order to claim any tax credit provided for by this section. This tax credit certificate issued by the department shall reserve the appropriate allocation of tax credits for the insurer to which a certificate is issued. An insurer seeking such certificate for reservation of tax credits for the writing of a policy pursuant to subsection (a) shall make application to the department in the manner prescribed by the department. The department shall review the applications received and subsequently issue a tax credit certificate to the insurer reserving the appropriate allocation of tax credits for the insurer. The department shall reserve the tax credits provided for by this section in the order in which the department receives the application for tax credit certificates, and for the benefit of the appropriate insurer, provided the application is approved by the department.
(d) The tax credit allowed under this section for a taxable year may be claimed only once for any one structure, regardless of the number of policies written on the structure.
(e) The department shall take the action necessary to monitor and examine the use of the credit claims under this section.
(f) This section applies to all new policies issued with an effective date after July 1, 2014.
Structure Code of Alabama
Chapter 1 - General Provisions.
Section 27-1-3 - Applicability of Title - Generally.
Section 27-1-4 - Applicability of Title - Exemptions.
Section 27-1-5 - Compliance Requirement.
Section 27-1-6 - Prevalence of Particular Over General Provisions.
Section 27-1-7 - Effect of Captions or Headings.
Section 27-1-10.1 - Insurance Coverage for Drugs to Treat Life-Threatening Illnesses.
Section 27-1-12 - Penalty for Violation of Title.
Section 27-1-13 - Existing Forms and Filings.
Section 27-1-14 - Preservation of Prior Rights, Obligations, Etc.
Section 27-1-15 - Payment for Services of Podiatrist.
Section 27-1-17.1 - Payment of Providers Through Electronic Funds Transfer Methods.
Section 27-1-19 - Reimbursement of Health Care Providers.
Section 27-1-20 - Patient Right to Know Act.
Section 27-1-21 - Uniformity of Limits Applied to Fulfillment of Certain Drug Prescriptions.
Section 27-1-22 - Uniform Prescription Drug Information Card or Technology.
Section 27-1-23 - Motor Vehicle Accidents by Certain Public Safety Officers.
Section 27-1-24 - Alabama Insurance Underwriting Association.