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SB 213

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

2025 Regular Session

Alabama bill exempts poultry house energy costs from state utility taxes to reduce farming operational expenses and boost industry competitiveness.

Currently Indefinitely Postponed
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Bill Summary · SB 213

Legislative bill overview

SB 213 would exempt energy consumption used in poultry houses from Alabama's utility gross receipts tax and utility service use tax. This targeted tax relief applies specifically to electricity and other utility costs directly associated with poultry farming operations, reducing the tax burden on this agricultural sector.

Why is this important

Poultry farming is a significant agricultural industry in Alabama, and utility costs represent a substantial operational expense for producers. Tax exemptions can improve farm profitability and competitiveness, potentially encouraging industry expansion and investment in the state. However, any tax exemption reduces state revenue that funds public services unless offset by other measures.

Potential points of contention

  • Revenue impact: The exemption reduces tax receipts for the state budget, requiring either spending cuts or alternative revenue sources unless the legislature offsets the loss
  • Scope and fairness questions: Why poultry specifically—should other agricultural operations (livestock, greenhouse farming, etc.) receive similar exemptions, and what justifies treating poultry differently
  • Definition and enforcement challenges: Determining what constitutes "energy use in poultry houses" for tax purposes could create administrative complexity and potential disputes over which facilities and uses qualify

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

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