Keeping Law SimpleLegislation, clearly explained
Back to Alaska
Alaska2026Passed Legislature

SB218

Tax Changes for Electric Co-ops and Power Facilities

Last scannedSep 22, 2026, 12:32 AM

In one sentence

This law 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 they involved electricity sales.
  • Confirms that agencies under AS 42.45.310 are exempt from most state and local taxes on their property, income, and bonds.
  • Exempts new electricity generation or storage facilities built after July 1, 2024, from state ad valorem, income, and excise taxes if they meet specific ownership rules.
  • Repeals three existing sections of the Alaska Statutes related to electric cooperative taxation.

Who it affects

  • Electric cooperatives operating in Alaska
  • Agencies established under AS 42.45.310 that sell electricity at retail
  • Entities building new electricity generation or storage facilities after July 1, 2024
  • Local governments and cities that previously received tax refunds from electric cooperative sales

Limits and unknowns

  • The tax exemption for new facilities only applies if they are built and placed into service on or after July 1, 2024.
  • New electricity generation or storage facilities must be operated by a public utility, a joint action agency, or provide power to specific users not served by utilities as of July 1, 2026.

Plain language

Terms to know

Ad valorem tax
A property tax based on the value of land or buildings.
Electric cooperative
An organization owned by its members that provides electricity service.
Joint action agency
A group formed under state law to provide services like power generation or storage for public utilities.

Official record

Sources

Source checked
Official bill pageIntroduced textCurrent bill text
Read the 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. (S) Minutes (SL&C)Min
  2. (S) Heard & HeldText
  3. (S) LABOR & COMMERCE at 01:30 PM BELTZ 105 (TSBldg)Text
  4. (S) Minutes (SL&C)Min
  5. (S) <Bill Hearing Canceled>Text
  6. (S) LABOR & COMMERCE at 01:30 PM BELTZ 105 (TSBldg)Text
  7. (S) REFERRED TO LABOR & COMMERCE1487
  8. (S) GOVERNOR'S TRANSMITTAL LETTER1488
  9. (S) FN2: (REV)1488
  10. (S) FN1: ZERO(CED)1488
  11. (S) L&C, FIN1487
  12. (S) READ THE FIRST TIME - REFERRALS1487