Alabama lawmakers pass farm utility tax relief bill

The Alabama Legislature on Thursday gave final passage to Senate Bill 159 by Senator Jack Williams, R-Wilmer, and Representative Danny Crawford, R-Athens.

Senate Bill 159 exempts certain agricultural operations from Alabama’s utility gross receipts and utility service use taxes. The bill removes taxes on natural gas and electricity used in commercial aquaculture aeration systems, greenhouses, pivot irrigation systems and poultry houses. The exemption will take effect September 1, 2026.

Crawford, chairman of the House Committee on Agriculture and Forestry, said Alabama’s poultry industry plays a vital role in feeding the state and the nation.

“Any opportunity we have to support the men and women who keep agriculture alive in our state is an opportunity we have the responsibility to pursue, and I appreciate Speaker Nathaniel Ledbetter for helping me deliver this win for Alabama’s farmers on the final day of the Legislative Session,” Crawford said.

Williams said Alabama farmers and producers are the backbone of the state’s economy and that lowering their costs can help reduce grocery prices.

“I’m proud to work with Speaker Ledbetter and Crawford to put more money back in our farmers’ pockets so they can keep putting healthy, affordable food on Alabama tables,” Williams said.

Speaker Nathaniel Ledbetter, R-Rainsville, said his district includes one of the largest concentrations of poultry farms in the state and that farmers are struggling with rising business costs.

“SB159 will go a long way in helping our farmers turn a dollar, and I commend Williams and Crawford for getting this bill across the finish line,” Ledbetter said.