2026-01-23                     House Journal                      Page 1477
HB 268                                                                                                                        
HOUSE BILL NO. 268 by the House Rules Committee by request of                                                                   
the Governor, entitled:                                                                                                         
                                                                                                                                
     "An Act relating to the taxation of electric cooperatives; relating                                                        
     to the taxation of electricity generation and electricity storage                                                          
     facilities; and providing for an effective date."                                                                          
                                                                                                                                
was read the first time and referred to the Labor & Commerce and                                                                
Finance Committees.                                                                                                             
                                                                                                                                
The following fiscal note(s) apply:                                                                                             
                                                                                                                                
1. Zero, Dept. of Commerce, Community, & Economic                                                                               
 Development                                                                                                                    
2. Fiscal, Dept. of Revenue                                                                                                     
                                                                                                                                
The Governor's transmittal letter dated January 19 follows:                                                                     
                                                                                                                                
"Dear Speaker Edgmon:                                                                                                           

2026-01-23                     House Journal                      Page 1478
Under the authority of Article III, Section 18 of the Alaska                                                                    
Constitution, I am transmitting a bill relating to taxation of electricity                                                      
and the tax treatment of qualifying electricity generation and storage                                                          
facilities.                                                                                                                     
                                                                                                                                
Affordable and reliable power is foundational to Alaska’s economy.                                                              
This bill reduces tax burdens that affect electric rates and improves the                                                       
tax framework for new generation and storage investment by                                                                      
eliminating the current tax on electricity sold by electric cooperatives                                                        
and expanding the existing exemption from state and local property,                                                             
income, and excise taxes for qualifying electricity generation and                                                              
storage facilities operated by independent power producers.                                                                     
                                                                                                                                
Under current law, the exemption applies only when a facility is                                                                
operated by a public utility or by a power producer that serves only                                                            
public utilities. This bill would extend eligibility to facilities serving                                                      
customers other than public utilities, so long as those customers first                                                         
begin receiving electric service on or after July 1, 2026.                                                                      
                                                                                                                                
I urge your prompt and favorable action on this measure.                                                                        
                                                                                                                                
Sincerely,                                                                                                                      
/s/                                                                                                                             
Mike Dunleavy                                                                                                                   
Governor"