This article was published in 2023 and updated in March 2026. Please visit our Resource Map to see new tax incentives now available in several states. Contact us if you have any questions.
Strengthening your home against storms is not just good for your safety and your insurance premiums. In several states, it can also reduce your tax bill. State tax credits and deductions are available for homeowners who retrofit their homes to resist wind, flood, and other storm damage, and in many cases FORTIFIED designation qualifies automatically.
The landscape changed significantly in 2025 and 2026. Louisiana added three major new incentives, Georgia enacted a new Catastrophe Savings Account program, and a new federal law expanded disaster loss relief starting in 2026. Use this guide as a starting point and always consult a qualified tax professional before filing.
Federal
There are no federal tax credits specifically for resilient construction at this time. However, if your home was damaged in a federally declared disaster, you may be eligible to deduct the casualty loss on your federal return. Starting January 1, 2026, state-declared disasters also qualify for this relief under new federal legislation, expanding coverage beyond federally declared events. A FORTIFIED Roof also qualifies as a capital improvement to your home, which may affect your cost basis when you sell.
Check IRS.gov for current disaster declarations and relief guidance.
Alabama
Retrofit Tax Deduction (Wind and Flood) Alabama residents may deduct from gross income the lesser of 50% of the cost or $3,000 to retrofit their home to resist loss from hurricanes, tornadoes, other catastrophic windstorm events, or rising floodwaters. The deduction is not limited to FORTIFIED. Any qualifying upgrade to an approved standard counts, and a FORTIFIED designation qualifies. Consult a tax advisor for details.
Catastrophe Savings Account Alabama residents can open a Catastrophe Savings Account at any bank to save for repair costs and losses from storms or floods not covered by insurance. Deposits, interest earned, and qualifying distributions are deductible from state income taxes. The deduction amount is based on your homeowners insurance deductible. The account must be labeled as a catastrophe savings account by the account holder, not the bank.
Learn more about Alabama incentives.
Louisiana
Louisiana now has the most comprehensive incentive structure for FORTIFIED construction in the country. Three programs were enacted or updated in 2025, and they interact with each other in specific ways. Here is how each works and how they can be combined.
FORTIFIED Roof Tax Credit (Act 404, effective July 1, 2025)
Louisiana homeowners can claim a nonrefundable state income tax credit of up to $10,000 for the cost of installing or retrofitting a roof to the FORTIFIED standard. The credit covers 100% of qualified expenses up to $10,000 per residence.
To qualify:
- The property must be your primary residence with a homestead exemption
- The roof must be certified by IBHS as meeting the FORTIFIED Roof standard
- The property cannot be a condominium, mobile home, or new construction
- No expenses paid with a Louisiana Fortify Homes Program (LFHP) grant qualify
Eligible expenses include materials and labor for roof deck attachment, sealed roof deck systems, roof covering materials, edge protection, ridge vents, and roof structure repairs. Evaluator, permit, and inspection fees do not qualify.
Unused credits can be carried forward for up to three years. The program is subject to a statewide cap of $10 million per fiscal year, awarded on a first-come, first-served basis.
To claim: Apply through the Louisiana Taxpayer Access Point (LaTAP) using Form R-90157 between January 1 and June 30 of the year following your IBHS certification. Once approved, claim the credit on Form IT-540 using Code 466 on Schedule J.
Louisiana Fortify Homes Program Grant Exclusion (Act 32, effective January 1, 2025)
If you received a Louisiana Fortify Homes Program (LFHP) grant, the grant amount may be considered taxable income on your federal return. However, Act 32 excludes LFHP grant amounts from Louisiana state income tax. If the grant was included in your federal adjusted gross income, you can exclude it from your Louisiana return. Claim the exclusion on Form IT-540, Schedule E, using Code 31E.
Voluntary Construction Code Retrofitting Deduction (Act 473, effective January 1, 2026)
Louisiana homeowners can deduct from state taxable income 50% of the cost of voluntarily retrofitting their primary residence to comply with the FORTIFIED standard or the State Uniform Construction Code, up to $10,000. This deduction was expanded in 2025 from a previous $5,000 cap and takes effect for taxable periods beginning January 1, 2026.
To qualify the retrofitting must be voluntary, meaning it cannot be required due to damage or destruction to the home. The property must be your primary residence with a homestead exemption and must be an existing structure, not new construction.
Claim the deduction on Form IT-540, Schedule E, using Code 16E.
How the three programs interact
The tax credit and the retrofitting deduction cannot both be claimed for the same expenses. Here is what applies to each type of expense:
If your expenses were covered by the LFHP grant:
- Tax Credit: No
- Grant Exclusion from Louisiana state income tax: Yes
- Retrofitting Deduction: No
If your expenses were paid out of pocket:
- Tax Credit: Yes
- Grant Exclusion: No
- Retrofitting Deduction: Yes, but you cannot claim both the credit and the deduction for the same expenses
In short, the grant exclusion applies only to grant recipients. The tax credit and retrofitting deduction are for out-of-pocket costs only, and you must choose one or the other for each expense, not both.
Louisiana Fortify Homes Grant Separate from the tax incentives, the Louisiana Fortify Homes Program provides grants of up to $10,000 for eligible homeowners. See current grant details.
Learn more about Louisiana incentives.
Mississippi
Retrofit Tax Deduction (Wind) Mississippi homeowners can deduct up to 50% or $5,000 of the cost of upgrading their home to the State Uniform Construction Code from state taxes. Installing a FORTIFIED Roof qualifies, provided the home did not have pre-existing damage before the upgrade.
Catastrophe Savings Account Contributions to a Catastrophe Savings Account, interest earned, and qualifying distributions are excluded from Mississippi taxable gross income. The deduction amount is based on your homeowners insurance deductible.
Learn more about Mississippi incentives.
South Carolina
Fortification Tax Credit (Wind and Flood) South Carolina residents can claim a state income tax credit of up to 25% of the cost or $1,000 for retrofitting their home to resist loss from hurricanes, rising floodwater, or other catastrophic windstorm events. The credit is not limited to FORTIFIED. Any qualifying mitigation work counts. If materials were purchased specifically to fortify the residence, an additional state sales or use tax credit of up to $1,500 is available. Contact the South Carolina Department of Revenue for filing details and Form SC SCH TC-43.
Learn more about South Carolina incentives.
Georgia
Catastrophe Savings Account (enacted July 2025) Georgia homeowners can now use tax-advantaged Catastrophe Savings Accounts for retrofit funding and post-disaster repairs following legislation enacted in July 2025.
Learn more about Georgia incentives.
All States: Use the Incentives and Resource Map
Tax credits and deductions change regularly. Use the Incentives and Resource Map to find the most current information for your state, including insurance discounts, grant programs, and tax incentives.
This guide is intended as a general reference and is updated periodically. Tax laws change. Always consult a qualified tax professional before making decisions based on this information.
Ready to strengthen your home? Find out what grants, discounts, and incentives are available where you live.