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SB 13

Taxation; Energy use in poultry houses, exempt from utility gross receipts and utility service use tax

2026 Regular Session Introduced by Jack Williams

Alabama bill exempts electricity and utilities used in poultry houses from state gross receipts and service use taxes, reducing farm operating costs but potentially cutting state revenue.

Read for the first time and referred to the Senate Committee on Finance and Taxation Education
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Bill Summary · SB 13

Legislative bill overview

SB 13 would exempt energy used in poultry houses from Alabama's utility gross receipts tax and utility service use tax. The bill targets a specific agricultural sector by removing these state taxes from electricity and other utility consumption in commercial poultry operations.

Why is this important

Poultry farming is a significant agricultural industry in Alabama, and utility costs represent a substantial operational expense. This tax exemption would reduce production costs for poultry producers, potentially affecting food prices, farm competitiveness, and state tax revenue. The impact ripples through agricultural economics, food supply chains, and state budgeting.

Potential points of contention

  • Tax revenue loss: Removing these taxes reduces state general fund revenue, requiring either budget cuts elsewhere or tax increases on other sectors to maintain services
  • Fairness and precedent: Exempting one agricultural sector may create pressure from other industries (greenhouse operations, dairy farms, etc.) seeking similar treatment, fragmenting the tax base
  • Economic justification: Questions about whether a competitive tax advantage for one state's industry is economically necessary or if it primarily benefits large corporate operations over smaller farms

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

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