AlabamaAlabama excludes energy use in some farm operations from utility taxes
Starting September 1, 2026, Alabama excludes energy used in certain agricultural operations from two utility taxes, with the exclusions ending in 2029.
What it does
Businesses using natural gas or electricity for commercial aquaculture aeration, greenhouses, pivot irrigation, or poultry houses are excluded from two utility taxes. Hemp and cannabis production is excluded from this tax break.
Argument forBusinesses running greenhouses, irrigation systems, poultry houses, or aquaculture aeration may pay less tax on the energy they use.
Argument againstThe tax exclusions could reduce state revenue from energy used in these operations.
More detail
The law excludes certain natural gas and electricity use from two utility taxes. The exclusions cover fuel or energy used in commercial aquaculture aeration systems, commercial greenhouses, pivot irrigation systems, and poultry houses. The exclusions do not cover natural gas or electricity used as fuel or energy to produce industrial hemp, hemp, or cannabis. The law takes effect September 1, 2026. The exclusions are repealed effective August 31, 2029.
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Where it stands
- Introduced
- Passed Senate
- Passed House
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2026
- Apr 17EnactedBecame Law
- Apr 9Motion to Read a Third Time and Pass - Adopted Roll Call 1329Passed House
- Vote recorded Motion to Read a Third Time and Pass - Adopted Roll Call 1329. Result: pass.Lower
- Apr 9Ready to Enroll
- Apr 9EnrolledTo Governor
- Apr 9Delivered to GovernorMinor
- Apr 9Signature Requested
- Apr 7Reported Out of Committee Second House
- Apr 7Read for the Second Time and placed on the Calendar (Ways and Means Education)Minor
- Apr 7Re-referred to Committee in Second House (Agriculture and Forestry)Minor
- Apr 7Reported Out of Committee Second House
- Apr 7Read for the Second Time and placed on the Calendar (Agriculture and Forestry)Minor
- Mar 19Read for the first time and referred to the House Committee on Ways and Means EducationMinor
- Mar 19Pending Committee Action in Second House (Ways and Means Education)
- Mar 17Third Reading in House of Origin
- Vote recorded Third Reading in House of Origin. Result: pass.Upper
- Vote recorded Williams motion to Adopt - Adopted Roll Call 900. Result: pass.Upper
- Vote recorded Motion to Read a Third Time and Pass as Amended - Adopted Roll Call 903. Result: pass.Upper
- Vote recorded Williams motion to Adopt - Adopted Roll Call 902. Result: pass.Upper
- Mar 17Finance and Taxation Education 2nd Amendment Offered (Finance and Taxation Education)Minor
- Mar 17Finance and Taxation Education 1st Amendment Offered (Finance and Taxation Education)Minor
- Mar 17Williams motion to Adopt - Adopted Roll Call 901Major
- Mar 17Williams motion to Adopt - Adopted Roll Call 900Major
- Mar 17Williams 1st Amendment OfferedMinor
- Mar 17Williams motion to Adopt - Adopted Roll Call 902Major
- Mar 17Motion to Read a Third Time and Pass as Amended - Adopted Roll Call 903Passed Senate
- Mar 17Engrossed
- Mar 5Read for the Second Time and placed on the Calendar (Finance and Taxation Education)Minor
- Mar 4Finance and Taxation Education 1st Amendment (Finance and Taxation Education)
- Mar 4Finance and Taxation Education 2nd Amendment (Finance and Taxation Education)
- Mar 4Reported Out of Committee House of Origin
- Feb 17Read for the Second Time and placed on the Calendar (Finance and Taxation General Fund)Minor
- Feb 17Re-referred to Committee in House of Origin (Finance and Taxation Education)Minor
- Jan 14Read for the first time and referred to the Senate Committee on Finance and Taxation General FundMinor
- Jan 14Pending Committee Action in House of Origin (Finance and Taxation General Fund)Introduced
AgricultureTaxes & Budget