The Pennsylvania Senate has passed a bill to cut taxes on electric bills and school supplies, strengthen the state’s Educational Improvement Tax Credit program and eliminate the current sales tax exemption for data centers.
House bill 1667 would eliminate the gross receipts tax on electric bills and require utility companies to pass the reduction on to their customers, saving ratepayers more than $1.7 billion over the first year. It would also implement a two-week sales tax holiday in August for school supplies, such as book bags, crayons, textbooks and tablets. For the EITC program, it would receive an additional $25 million under the legislation. The program provides scholarships to help families send kids to schools that best meet student needs.
The amendment made by the Senate would also eliminate sales tax exemptions for potential A.I. data centers that are already in place.
In a statement, Senate Majority Leader Joe Pittman said that addressing the affordability challenge “is essential to strengthening the economic stability and well-being of our residents.” He added that, “With passage of this legislation, we are supporting families, empowering parents, and taking a significant step forward to help ease the financial pressures that so many households are facing.”
The bill will head to the State House for consideration.
