House Bill 244 Alabama 2026 Session

Summary

Primary Sponsor

Danny CrawfordRepresentative

Republican

Session

2026 Regular Session

Title

Taxation; Energy use in commercial greenhouses, pivot irrigation systems, and poultry houses, exempt from utility gross receipts and utility service use tax

Summary

HB244 would exempt energy used for heating commercial greenhouses, pivot irrigation systems, and poultry houses from Alabama's utility gross receipts tax and utility service use tax, starting September 1, 2026.

What This Bill Does

The bill amends two tax laws to exclude energy used for heating certain agricultural facilities from taxes. Specifically, it removes from the gross receipts tax the energy (natural gas or electricity) used for heating commercial greenhouses, pivot irrigation systems, and poultry houses. It also removes from the utility service use tax the storage, use, or consumption of energy used for heating these facilities. The exclusions do not apply to energy used for hemp or cannabis production, and the changes take effect on September 1, 2026.

Who It Affects

• Operators of commercial greenhouses, pivot irrigation systems, and poultry houses would see reduced energy taxes when heating these facilities.
• Utility providers and tax authorities would apply the exemptions to qualifying energy use, reducing taxable receipts or service-use taxes for those transactions.

Key Provisions

• Exclusion from the utility gross receipts tax for energy used as fuel or energy in heating commercial greenhouses, pivot irrigation systems, and poultry houses (amends §40-21-83).
• Exclusion from the utility service use tax for energy used as fuel or energy in heating those facilities (amends §40-21-103).
• Effective date: September 1, 2026; hemp/cannabis energy exclusions remain unaffected.

AI-generated summary using openai/gpt-5-nano on Feb 25, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Taxation & Revenue