Putting Pennsylvania Families First
HARRISBURG – The Senate approved legislation to dramatically decrease costs for Pennsylvania families by cutting taxes on electric bills and school supplies, strengthening the state’s Educational Improvement Tax Credit (EITC) program and eliminating the current sales tax exemption for data centers, according to Sen. Farry (R-6), who supported the measure.
“Affordability for Pennsylvanians remains one of my top priorities,” said Farry. “As families continue to face inflationary pressures, I continue to be committed to protecting taxpayers so Pennsylvania can continue to grow and succeed. The passage of this legislation represents a significant step toward easing the financial strain facing many households.”
Making up the largest tax cut in Pennsylvania history, the proposal 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, also eliminates a long-standing, special sales tax exemption for data centers in the Commonwealth. Data centers would once again be required to pay their fair share of the sales tax when purchasing mechanical equipment, cooling systems, software programs, network infrastructure, security systems, and other equipment necessary for operations.
The Senate action comes at a time when hardworking Pennsylvania families are laser-focused on the issue of affordability. The bill now moves to the House of Representatives for consideration.