Two companion bills aimed at lowering energy costs for Alabama farmers advanced Wednesday after clearing committees in both chambers, with sponsors calling the legislation targeted relief for struggling producers.
Senate Bill 159, sponsored by Senator Jack Williams, R-Wilmer, and House Bill 244, sponsored by Representative Danny Crawford, R-Athens, would exempt certain agricultural operations from the state utility gross receipts tax and utility service use tax on natural gas and electricity.
As introduced, SB159 would amend state law to exclude from the utility gross receipts tax “the furnishing of natural gas or electricity for use or consumption by commercial agricultural producers in the operation of poultry houses, commercial greenhouses or nurseries, irrigation systems, and catfish farms,” according to the bill text.
Williams presented SB159 to the Finance and Taxation Education Standing Committee and said the measure would provide meaningful relief to farmers statewide who are struggling to make ends meet.
“Our farmers are struggling people, I mean, really struggling. If we don’t find a way to keep them in business, I don’t know how we’re gonna do it,” Williams said.
He said poultry growers in particular face high energy costs, with utilities accounting for 20 percent to 40 percent of expenses for chicken houses, especially as changing weather increases heating and cooling demands.
“The main part of this bill is for chicken houses, chicken growers, which is one of our biggest industries in the state,” Williams said.
The Senate committee adopted two amendments—one adding a sunset clause and another narrowing language related to greenhouse eligibility. The greenhouse amendment specifically excludes “natural gas or electricity for use or consumption as fuel or energy in the production of industrial hemp or hemp … or cannabis.”
In the House, Crawford presented HB244 as companion legislation and described it as modest but meaningful relief.
“This is just a little help for the farming community. Every year, we see sales where people are selling out. They can’t make it. Input costs have gone up so much, so this is just a little bit to help them,” Crawford said.
Before approving the bill in committee, the House adopted the same amendments, adding the hemp and cannabis limitation to the exemption. Crawford said House members requested the addition as the bill moved through the chamber.
Both bills now move to their respective floors for consideration by the full House and Senate.
