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Alaska2026Passed Legislature

HB268

Tax Changes for Electric Co-ops and Power Facilities

Last scannedSep 12, 2026, 4:46 AM

In one sentence

This bill removes state taxes on electric cooperatives and gives tax breaks to new electricity generation or storage facilities built after July 1, 2024.

What it does

  • Removes state ad valorem, income, and excise taxes for all electric cooperatives.
  • Stops the refund of telephone cooperative gross revenue taxes that were previously shared with local governments when electricity was sold outside cities or boroughs; these funds will now stay in the state general fund.
  • Exempts new electricity generation and storage facilities from state and local ad valorem, income, and excise taxes if they meet specific ownership rules regarding public utilities or joint action agencies.
  • Repeals existing laws regarding electric cooperative taxes to match these changes.

Who it affects

  • Electric cooperatives operating in Alaska
  • Entities that build or operate new electricity generation facilities on or after July 1, 2024
  • Entities that build or operate new electricity storage facilities on or after July 1, 2024
  • Local governments such as cities and boroughs

Limits and unknowns

  • The bill does not explain how much money the state or local governments will lose in tax revenue.
  • Facilities built before July 1, 2024 are not covered by the new exemption rules for generation and storage.

Plain language

Terms to know

Electric cooperative
A business owned by its members that provides electric power to customers.
Ad valorem tax
A property tax based on the value of land or buildings.

Official record

Sources

Validated
Official bill pageIntroduced textCurrent bill text

Official summary

TAX: ELECTRIC COOPS/GENERATION/STORAGE An Act relating to the taxation of electric cooperatives; relating to the taxation of electricity generation and electricity storage facilities; and providing for an effective date.

Official activity

Bill history

  1. (H) REFERRED TO LABOR & COMMERCE1477
  2. (H) GOVERNOR'S TRANSMITTAL LETTER1477
  3. (H) FN2: (REV)1477
  4. (H) FN1: ZERO(CED)1477
  5. (H) L&C, FIN1477
  6. (H) READ THE FIRST TIME - REFERRALS1477