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SB0218A -1- SB 218
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SENATE BILL NO. 218
IN THE LEGISLATURE OF THE STATE OF ALASKA
THIRTY-FOURTH LEGISLATURE - SECOND SESSION
BY THE SENATE RULES COMMITTEE BY REQUEST OF THE GOVERNOR
Introduced: 1/21/26
Referred: Labor & 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-GS2631\A
SB 218 -2- SB0218A
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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