HARRISBURG – The Senate approved legislation cutting taxes on electric bills and school supplies, strengthening the state’s EITC program and eliminating the current sales tax exemption for data centers.
The legislation would eliminate the gross receipts tax on electric bills and require utility companies to pass the reduction on to consumers, 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.
The highly successful EITC program, which provides scholarships to help families send children to schools that best meet student needs, would receive an additional $25 million under the legislation, bringing the total to $705 million.
House Bill 1667, as amended by the Senate, would also respond to concerns being raised across the commonwealth by eliminating the existing sales tax exemption for data centers.
The amended bill now returns to the House for consideration.