Pryor files safe-room proposal

It creates $1,000 tax credit on building tornado shelter

One home remains (top right) in the Parkwood Meadows neighborhood of Vilonia where more than 50 houses were destroyed in an April 27 tornado. Sen. Mark Pryor has filed legislation to create a tax credit, worth up to $1,000, for people who have storm shelters or safe rooms installed in their homes.
One home remains (top right) in the Parkwood Meadows neighborhood of Vilonia where more than 50 houses were destroyed in an April 27 tornado. Sen. Mark Pryor has filed legislation to create a tax credit, worth up to $1,000, for people who have storm shelters or safe rooms installed in their homes.

WASHINGTON -- U.S. Sen. Mark Pryor, D-Ark., filed legislation Wednesday to create a tax credit of up to $1,000 each for people who install storm shelters or safe rooms in their homes.

In April, a tornado ravaged parts of Pulaski, Faulkner and White counties and killed 16 people. The tax credit idea came after conversations with people affected by the tornadoes, said Pryor, who is from Little Rock.

"A storm shelter really could be the difference between life and death," Pryor said.

He said the proposal, along with a reimbursement offered by Arkansas and a handful of other states, could substantially reduce the cost of shelters and safe rooms.

"It doesn't make them free, but it definitely cuts the costs," Pryor said.

The bill isn't likely to be considered until after the November election at the earliest. The House and Senate could leave Washington as soon as this evening and aren't expected to return until mid-November. Any legislation not approved by the end of this year must start over from scratch under the new Congress.

Pryor said he hopes to attach the tax credit to other tax legislation before the end of the year.

"I think we've had enough severe weather around, and this is a help to homeowners," Pryor said. "I think we can get it passed."

Since 1999, Arkansas' Department of Emergency Management has had a rebate program that reimburses a person up to $1,000 after he installs a shelter or safe room that meets certain state and federal criteria. The department accepted applications only for a few days in July, and the $1.25 million in the fund for fiscal 2015 is already gone, department spokesman Rick Fahr said.

Of 3,343 applications, 1,255 reimbursements were paid, Fahr said. The last reimbursement check was sent this week, he said.

"The money normally runs out very quickly," Fahr said. "The shelters are becoming more prevalent, so the applications for that reimbursement are going up as well."

He said there is usually not enough money to reimburse everyone who applies, but applications roll over to the next year if there isn't money available. Funding is not available again until July.

Pryor said he proposed a tax credit rather than more money for the existing reimbursement program because reimbursement programs are more likely to get cut in tough budget years. The Congressional Budget Office will determine the cost of the measure if it moves forward.

Mayflower Mayor Randy Holland said the state reimbursements can be delayed a year or two, and having a federal tax credit would be an incentive to build a storm shelter.

The Federal Emergency Management Agency estimates the average shelter cost at $3,000. But shelters can cost more than $4,000, Holland said.

"Some of the people here just don't have the money to afford one," he said.

He said a $1,000 federal tax credit could be the encouragement that some people need.

"That would save a lot of lives," Holland said. With "a tornado, you're just playing Russian roulette. After seeing the devastation of that tornado that went through here, [shelters are] just something I feel strong about."

U.S. Rep. Tim Griffin, R-Ark., who represents much of the areas hit last spring, said he hasn't seen Pryor's bill but that he has supported reimbursements for storm shelters in the past.

Metro on 09/18/2014

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