Senate Bill 159 Alabama 2026 Session

Updated Mar 5, 2026

Notable

Summary

Primary Sponsor: Jack W. WilliamsSenator
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: SB159 would exempt energy used for heating certain agricultural facilities from Alabama's utility taxes for a limited time.
What This Bill Does
The bill amends two tax sections to exclude electricity, natural gas, or domestic water used for heating in commercial aquaculture aeration systems, commercial greenhouses, pivot irrigation systems, and poultry houses from utility gross receipts and utility service use taxes. It clarifies that the exemption applies only to energy used as fuel or energy in heating those facilities and does not cover energy used for hemp or cannabis production. The exemption is temporary, with the amendments repealing on August 31, 2029, and the law taking effect September 1, 2026.

Who It Affects
Operators of commercial greenhouses, aquaculture facilities with aeration systems, pivot irrigation systems, and poultry houses—benefit from tax exemption on heating energy
Utility providers (electricity, natural gas, domestic water) and their customers—will see reduced tax collections on these uses and must implement the exemption
Alabama state government and taxpayers—potentially reduced tax revenue from the exempted energy use during the effective period

Key Provisions
Excludes from utility taxes the furnishing of electricity, natural gas, or domestic water used for heating in commercial aquaculture aeration systems, commercial greenhouses, pivot irrigation systems, and poultry houses.
Exemption applies to energy used for heating (fuel or energy) in the specified facilities, but not for energy used in hemp/cannabis production.
Amendments to Sections 40-21-83 and 40-21-103 set to repeal on August 31, 2029.
Effective date of the act is September 1, 2026.

AI-generated summary using openai/gpt-5-nano-2025-08-07 on Mar 17, 2026. May contain errors — refer to the official bill text for accuracy.
Subjects: Taxation & Revenue