Riley Introduces Legislation to Eliminate Taxes on Utility Bills

As Upstate utility costs hit record highs, Riley plan could save families up to $100 on a $250 bill

WASHINGTON, D.C. - Today, Congressman Josh Riley (NY-19), alongside Congressman Jeff Van Drew (NJ-02), introduced the No Taxes on Utility Bills Act, bipartisan legislation to allow taxpayers to deduct taxes and state-mandated surcharges included on their gas and electric utility bills.

"Families across Upstate New York are struggling just to keep the lights and heat on. It's an emergency, and we need to treat it like one," said Rep. Riley. "That means cutting people a break, not piling on taxes and fees every time they open their utility bill. This is a step toward real relief."

Upstate New York has some of the highest household energy prices in the nation, and costs have climbed even higher in recent years. But the base cost of energy is only part of what families see on their monthly bill. According to analysis by Heatmap News and MIT, taxes and state-mandated surcharges accounted for nearly $100 of a $250 Upstate utility bill. Under Riley's plan, taxpayers would be able to deduct that full amount.

The No Taxes on Utility Bills Act would:

• Allow taxpayers to deduct all taxes and state-mandated surcharges included on gas and electric bills
• Apply to both residential and small business ratepayers
• Take effect for taxable years beginning after enactment

Current federal tax law allows deductions for certain categories of taxes but does not include taxes and state-mandated surcharges embedded in utility bills. The legislation would amend Section 164(a) of the Internal Revenue Code to include these costs as deductible expenses.

Riley has made lowering costs for Upstate families a top priority:

• February 13, 2025 - Introduced the Weatherization Enhancement and Readiness Act (H.R. 1355) to help families reduce energy usage and lower monthly utility bills
• February 13, 2025 - Introduced the Lowering Egg Prices Act (H.R. 2222) to cut outdated regulations and bring down grocery costs for working families
• February 21, 2025 - Launched the Upstate Agriculture Advisory Board to strengthen local supply chains and lower costs for consumers
• April 30, 2025 - Backed the Infrastructure Project Acceleration Act (H.R. 2783) to speed up infrastructure projects and reduce costs for consumers and businesses
• May 1, 2025 - Supported the Securing Semiconductor Supply Chains Act (H.R. 2480) to strengthen domestic manufacturing and reduce long-term cost pressures
• May 2025 - Fought to restore federal funding for manufacturing support programs that help lower costs and strengthen local production
• September 18, 2025 - Introduced the Keep the Lights Local Act (H.R. 5487) to ban foreign corporations and governments from owning American utility companies
• December 10, 2025 - Introduced the No Bonuses for Utility Executives Act (H.R. 6590) to prohibit utility executives from receiving bonuses when they raise rates faster than inflation
• 2025-2026 - Served as an intervener in the Central Hudson and NYSEG rate cases, where he participated in proceedings and cross-examined utility companies on behalf of ratepayers

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