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Alaska2026Passed Legislature

SB218

Tax Changes for Electric Co-ops and Power Facilities

Last scannedSep 10, 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

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. (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