Alabama farmers who run poultry houses, greenhouses or pivot irrigation can stop paying the state’s utility gross receipts tax on the electricity or natural gas those operations use. The break started Sept. 1, 2026 and ends Aug. 31, 2029. It is not automatic, though. A farm has to get a state certificate and hand it to the utility.
What the new law covers
The Alabama Department of Revenue posted a notice on new utility tax exemptions on Sept. 24, 2026. It says Act 2026-595 makes “the furnishing of natural gas or electricity” exempt from the Utility Gross Receipts Tax when the power is used as fuel or energy in four kinds of operations: commercial aquaculture aeration systems, commercial greenhouses, pivot irrigation systems and poultry houses.
The department’s notice does not state the tax rate, so what a farm saves depends on its bill. The more power a barn, greenhouse or irrigation rig uses, the more power stops being taxed…