Taxation; to exempt certain contractors from utility gross receipts tax, utility service use tax, and sales and use tax on natural gas and liquefied petroleum gas.

HB 531 would exempt contractors working on public highway, road, or bridge construction projects from paying state taxes on natural gas and liquefied petroleum gas (LPG) used during construction. Specifically, it removes utility gross receipts tax, utility service use tax, and state sales and use tax on these fuels for licensed contractors or subcontractors under government contracts. Counties and municipalities may also adopt similar local tax exemptions for the same purpose. The bill, set to take effect on September 1, 2026, applies only to projects funded by governmental entities as defined in Alabama law.