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HB268 • 2026

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.

Taxes
Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor
HOUSE RULES BY REQUEST OF THE GOVERNOR
Last action
2026-01-23
Official status
(H) L&C
Effective date
Not listed

Plain English Breakdown

The official source material does not provide specific details on how existing taxes for electric cooperatives will be adjusted.

Electric Cooperative Tax Changes

This act changes how electric cooperatives and electricity generation and storage facilities are taxed in Alaska.

What This Bill Does

  • Makes electric cooperatives exempt from state and local ad valorem, income, and excise taxes.
  • Changes the way tax refunds are given to local governments for telephone cooperative gross revenue tax but not for electric cooperative sales outside cities or organized boroughs.
  • Exempts bonds issued by agencies and their interest and income from all state and local taxes.
  • Makes new electricity generation and storage facilities built after July 1, 2024, exempt from certain taxes if they are operated by specific types of entities.

Who It Names or Affects

  • Electric cooperatives
  • Local governments in Alaska
  • Entities building new electricity generation or storage facilities

Terms To Know

Ad valorem tax
A type of property tax based on the value of a property.
Excise tax
A tax on specific goods, services, or activities.

Limits and Unknowns

  • The bill does not specify how existing taxes will be adjusted for electric cooperatives.
  • It is unclear if there are any exceptions to the new tax exemptions for electricity generation and storage facilities.

Bill History

  1. 2026-01-23 1477

    (H) REFERRED TO LABOR & COMMERCE

  2. 2026-01-23 1477

    (H) GOVERNOR'S TRANSMITTAL LETTER

  3. 2026-01-23 1477

    (H) FN2: (REV)

  4. 2026-01-23 1477

    (H) FN1: ZERO(CED)

  5. 2026-01-23 1477

    (H) L&C, FIN

  6. 2026-01-23 1477

    (H) READ THE FIRST TIME - REFERRALS

Official Summary Text

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.

Current Bill Text

Read the full stored bill text 
HB0268a -1- HB 268
New Text Underlined [DELETED TEXT BRACKETED]

34-GH2631\A

HOUSE BILL NO. 268

IN THE LEGISLATURE OF THE STATE OF ALASKA

THIRTY-FOURTH LEGISLATURE - SECOND SESSION

BY THE HOUSE RULES COMMITTEE BY REQUEST OF THE GOVERNOR

Introduced: 1/23/26
Referred: Labor and Commerce, Finance

A BILL

FOR AN ACT ENTITLED

"An Act relating to the taxation of electric cooperatives; relating to the taxation of 1
electricity generation and electricity storage facilities; and providing for an effective 2
date." 3
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 4
* Section 1. AS 10.25.540 is amended by adding a new subsection to read: 5
(c) An electric cooperative is not subject to state and local ad valorem, 6
income, and excise taxes. 7
* Sec. 2. AS 10.25.570 is amended to read: 8
Sec. 10.25.570. Refund to local governments. The proceeds of the telephone 9
cooperative gross revenue tax [AND THE ELECTRIC COOPERATIVE TAX], less 10
the amount expended by the state in collecting the tax [THEIR COLLECTION], shall 11
be refunded to an organized borough or a city of any class incorporated under state 12
law, in the proportion that the revenue was earned within the city or the borough area 13
outside the city. However, taxes collected on gross revenue earned by a telephone 14
34-GH2631\A
HB 268 -2- HB0268a
New Text Underlined [DELETED TEXT BRACKETED]

cooperative [OR ON THE SALE OF ELECTRICITY BY AN ELECTRIC 1
COOPERATIVE] outside a city or organized borough shall be retained by the state 2
and deposited into its general fund. 3
* Sec. 3. AS 42.45.310(f) is amended to read: 4
(f) Bonds and other obligations issued by the agency and all interest and 5
income from them and all fees, charges, funds, revenue, income, and other money 6
pledged or available to pay or secure the payment of the bonds or obligations or 7
interest on them are exempt from taxation. The real and personal property of the 8
agency and the assets, income, and receipts of the agency are exempt from all taxes 9
and special assessments of the state or a political subdivision of the state [, EXCEPT 10
THAT ELECTRICITY SOLD AT RETAIL BY AN AGENCY IS SUBJECT TO THE 11
ELECTRIC COOPERATIVE TAX (AS 10.25.540 - 10.25.570)]. 12
* Sec. 4. AS 43.98.100(a) is amended to read: 13
(a) An electricity generation facility or electricity storage facility that is 14
constructed and placed into service on or after July 1, 2024, is not subject to state and 15
local ad valorem, income, and excise taxes if the [ELECTRICITY GENERATION] 16
facility is 17
(1) operated by a public utility or joint action agency established under 18
AS 42.45.310; or 19
(2) operated by an entity other than a public utility and provides power 20
(A) only to a public utility; or 21
(B) to an end user who was not receiving electric service 22
from a public utility on July 1, 2026. 23
* Sec. 5. AS 10.25.540(b)(2), 10.25.555, and 10.25.580 are repealed. 24
* Sec. 6. This Act takes effect July 1, 2026. 25