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, strengthening the state's Educational Improvement Tax Credit (EITC) program and eliminating the current sales tax exemption for data centers, according to Senate President Pro Tempore Kim Ward (R-39), Senate Majority Leader Joe Pittman (R-41), Senate Appropriations Committee Chair Scott Martin (R-13) and Senate Majority Whip Wayne Langerholc (R-35).

"Senate Republicans continue to deliver for Pennsylvania families by passing the largest tax cut in the history our Commonwealth, which will provide immediate relief to Pennsylvania ratepayers by eliminating the gross receipts tax on electric bills and save consumers money," Ward said. "We encourage House Democrats to take up this bill immediately."

"Affordability remains a concern for people in every community and addressing that challenge head-on is essential to strengthening the economic stability and well-being of our residents," Pittman said. "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."

"Lowering energy costs for Pennsylvania families and job-creators, protecting our communities, supporting school choice options for students, and empowering parents are some of our top priorities," Martin said. "This bill continues to build on the tremendous progress we've made in recent years to break down the cost burdens that are preventing Pennsylvania from growing economically and demographically."

"Today's vote delivers real, immediate relief to Pennsylvania families and protects students from the drastic, politically motivated measures taken by the House of Representatives," said Langerholc. "I was proud to stand firmly behind this measure and ensure that Pennsylvania tax dollars are returned to the people of the Commonwealth."

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.

CONTACTS:
Erica Clayton Wright (Sen. Ward)
Kate Flessner (Sen. Pittman)
Jason Thompson (Sen. Martin)
Gwenn Dando (Sen. Langerholc)