This amendment clarifies that the tax exemption for energy used in greenhouses and poultry houses does not apply to growing industrial hemp or cannabis.
Alabama2026Enacted
SB159
Tax Exemption for Energy Used in Specific Farming Operations
Last scannedAug 24, 2026, 9:06 AM
In one sentence
This law removes state taxes on natural gas and electricity used to power commercial greenhouses, poultry houses, pivot irrigation systems, and aquaculture aeration systems.
What it does
- Exempts the sale of natural gas or electricity for specific farming uses from the utility gross receipts tax.
- Removes the utility service use tax on energy purchased for storage or consumption in these same farming operations.
- Lists commercial aquaculture aeration systems, greenhouses, pivot irrigation systems, and poultry houses as eligible facilities.
- Excludes industrial hemp production and cannabis production from receiving this tax exemption.
Who it affects
- Owners of commercial greenhouses who use natural gas or electricity for heating.
- Operators of poultry houses using energy to heat their buildings.
- Farmers running pivot irrigation systems powered by utility services.
- Commercial aquaculture facilities that need aeration systems.
Limits and unknowns
- This tax exemption ends on August 31, 2029.
- The law does not apply if the energy is used to grow industrial hemp or cannabis.
- The text does not explain how much money farmers will save.
Plain language
Terms to know
- Utility gross receipts tax
- A tax charged to the company selling electricity or natural gas based on how much money they make from sales.
- Utility service use tax
- A tax charged directly to the customer who buys and uses electricity or natural gas.
- Aquaculture aeration systems
- Machines that add oxygen to water in fish farms so aquatic animals can breathe.
Official record
Sources
Official summary
This act amends Sections 40-21-83 and 40-21-103, Code of Alabama 1975, to exempt: (1) furnishing natural gas or electricity for commercial aquaculture aeration systems, commercial greenhouses, and pivot irrigation systems from the utility gross receipts tax; and (2) natural gas or electricity purchased for storage, use, or other consumption used for commercial aquaculture aeration systems, commercial greenhouses, pivot irrigation systems, and poultry houses from the utility service use tax.
Official activity
Bill history
- EnactedSenate
- Motion to Read a Third Time and Pass - Adopted Roll Call 1329 (Yeas 101, Nays 0)House
- Signature RequestedHouse
- Delivered to GovernorSenate
- EnrolledSenate
- Ready to EnrollSenate
- Read for the Second Time and placed on the CalendarHouse
- Reported Out of Committee Second HouseHouse
- Re-referred to Committee in Second HouseHouse
- Read for the Second Time and placed on the CalendarHouse
- Reported Out of Committee Second HouseHouse
- Pending Committee Action in Second HouseHouse
- Read for the first time and referred to the House Committee on Ways and Means EducationHouse
- Motion to Read a Third Time and Pass as Amended - Adopted Roll Call 903 (Yeas 30, Nays 1)Senate
- Williams motion to Adopt - Adopted Roll Call 902 (Yeas 34, Nays 0)Senate
- Williams motion to Adopt - Adopted Roll Call 900 (Yeas 34, Nays 0)Senate
- Williams motion to Adopt - Adopted Roll Call 901 (Yeas 34, Nays 0)Senate
- Third Reading in House of Origin (Yeas 34, Nays 0)Senate
- EngrossedSenate
- Williams 1st Amendment OfferedSenate
Changes
Amendments
3 stored
This amendment sets a specific end date for the tax exemption created by the bill.
This amendment adds commercial aquaculture aeration systems to the list of agricultural operations that are exempt from certain utility taxes.