Senate Bill 159 Alabama 2026 Session

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 electricity and natural gas used in commercial greenhouses, pivot irrigation systems, and poultry houses from Alabama's utility gross receipts tax and utility service use tax, effective September 1, 2026.

What This Bill Does

The bill amends Alabama Code sections 40-21-83 and 40-21-103 to remove energy used in the three named facilities from being taxed. This means electricity or natural gas used for heating or operating these facilities would no longer be subject to the utility gross receipts tax or the utility service use tax. The exemption becomes effective on September 1, 2026.

Who It Affects

• Commercial greenhouse operators, pivot irrigation system owners, and poultry house operators would see lower energy costs since energy used for those purposes would be exempt from the taxes.
• Electric and natural gas utility providers and state tax revenue would see reduced taxable amounts from these customers starting September 1, 2026.

Key Provisions

• Excludes from the gross receipts tax and service use tax the use or purchase of natural gas or electricity for heating and operation in commercial greenhouses, pivot irrigation systems, and poultry houses.
• Amends Sections 40-21-83 and 40-21-103 to implement the exemption.
• Effective September 1, 2026.

AI-generated summary using openai/gpt-5-nano on Feb 12, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Taxation & Revenue