PA Senate Votes for Historic Tax Cuts

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, eliminating the current sales tax exemption for data centers and strengthening the state's Educational Improvement Tax Credit (EITC) program, according to Sen. Lisa Baker (R-20) who supported the measure.

"Pennsylvania families deserve relief from the rising cost of everyday essentials, and this legislation delivers meaningful savings where they need it most," Baker said. "By lowering electric bills, providing a back-to-school sales tax holiday, expanding educational opportunities through the EITC program and ensuring our tax policies reflect the needs of communities across the commonwealth, we're putting hardworking taxpayers first. This package represents a significant investment in Pennsylvania families and a commitment to making our state more affordable for everyone."

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. EITC scholarships remain a Senate Republican priority for empowering Pennsylvania parents.

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 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.