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 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, starting September 1, 2026.

What This Bill Does

Under current law, utilities are taxed through a gross receipts tax and a service use tax on electricity, natural gas, and other utilities. HB244 would remove those taxes for energy used in the specified facilities by amending Sections 40-21-83 and 40-21-103 of the Alabama Code. If enacted, energy used or purchased for heating or powering commercial greenhouses, pivot irrigation systems, and poultry houses would not be subject to these two taxes.

Who It Affects

• Commercial greenhouses, pivot irrigation systems, and poultry houses would see lower or zero utility taxes on electricity or natural gas used for their operations.
• Utility providers and energy suppliers (and their customers who would pay these taxes) would no longer collect or remit the utility gross receipts tax and utility service use tax on energy used in the specified facilities.

Key Provisions

• Excludes use or purchase of electricity and natural gas for use or consumption in commercial greenhouses, pivot irrigation systems, and poultry houses from the utility gross receipts tax and the utility service use tax.
• Amends Sections 40-21-83 and 40-21-103, Code of Alabama 1975, to implement the exemption.
• Effective date: September 1, 2026.

AI-generated summary using openai/gpt-5-nano on Feb 11, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Taxation & Revenue