AL HB605

Exempts agricultural production inputs, energy used in agriculture, diesel exhaust fluid for agricultural uses, and agricultural machinery and equipment from Alabama state sales and use tax for qualified agricultural producers.

Defines "qualified agricultural producer" as persons or entities that produce and sell $5,000 or more of agricultural products annually, provide $5,000 in agricultural services annually, produce long-term crops with $5,000 annualized sales capacity, or are actively engaged in agricultural production with sufficient volume to generate $5,000 in annualized sales.

Requires qualified producers to apply to the Commissioner of Agriculture and Industries for a three-year tax exemption certificate that contains an exemption number, and requires producers to maintain records of tax-exempt purchases for verification.

Authorizes the Commissioner to suspend exemption certificates for up to one year for unlawful use, and may revoke certificates after a subsequent unlawful use within five years; revoked producers cannot reapply for three years.

Becomes effective September 1, 2025, and requires the Department of Agriculture and the Department of Revenue to jointly publish annual reports on the number of certificates issued, renewed, and revoked or suspended.