Thursday, September 24, 2026

In accordance with Act 2026-595, effective September 1, 2026, through August 31, 2029, the furnishing of natural gas or electricity for use or consumption as fuel or energy in commercial aquaculture aeration systems, commercial greenhouses, pivot irrigation systems, and poultry houses are exempt from Utility Gross Receipts Tax.

To claim the exemption, a Form STE-3 Utility Tax Certificate of Exemption must be obtained from the Alabama Department of Revenue. Once obtained, the certificate should be provided to the electric or natural gas utility provider. This exclusion does not include the furnishing of natural gas or electricity used or consumed as fuel or energy in the production of industrial hemp or cannabis.

This exemption applies only to the qualifying utility. If a utility account serves both exempt and non-exempt uses, ALDOR requires separate metering.

The Utility Tax Certificate of Exemption application can be found at ST-EX-A3 (4-26).pdf. An electronic application is also available at https://myalabamataxes.alabama.gov/tap/_/ by clicking on the Register a Business/Obtain a New Tax Account Number link located in the Businesses section.

If you have any questions about this notice, please contact the Sales and Use Tax Division.

Contact
Vince Arnold
Sales and Use Tax Division
Tax Administration Manager
334-353-9680
Vince.Arnold@revenue.alabama.gov