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SB 159

Taxation; Energy use in commercial greenhouses, pivot irrigation systems, and poultry houses, exempt from utility gross receipts and utility service use tax

2026 Regular Session Introduced by Jack Williams

SB 159 eliminates Alabama utility taxes on energy used by commercial greenhouses, pivot irrigation systems, and poultry houses to reduce operating costs for targeted agricultural producers.

Enacted
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Bill Summary · SB 159

Legislative bill overview

SB 159 exempts electricity and energy use in commercial greenhouses, pivot irrigation systems, and poultry houses from Alabama's utility gross receipts tax and utility service use tax. The bill targets three specific agricultural operations by removing state-level taxes on their energy consumption.

Why is this important

Agricultural operations with high energy demands—particularly greenhouse heating/cooling, irrigation pumping, and poultry house climate control—face significant operational costs. This tax exemption could reduce production expenses for these farms, potentially lowering food costs and improving competitiveness. However, it represents foregone state revenue that must be offset elsewhere or absorbed by the budget.

Potential points of contention

  • Revenue impact: Removing utility taxes from these sectors reduces state General Fund revenue without identified replacement funding sources
  • Scope fairness: Why these three agricultural operations but not others (dairy farms, aquaculture, grain processing)? Creates selective tax treatment across agriculture
  • Precedent concerns: Establishes industry-specific tax breaks that could proliferate, fragmenting the tax base and creating complexity for future administrations

Compiled from official sources — confirm details with the bill’s official record.

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