HB 2373
An Act amending the act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, in gross receipts tax, further providing for imposition of tax and for establishment of revenue-neutral reconciliation; and providing for reporting and for transfers.
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Sign in to take action- Introduced
- Passed House
- Passed Senate
- To Governor
- Became Law
Bill overview
This bill amends Pennsylvania’s Tax Reform Code of 1971 to adjust the gross receipts tax on electric light, waterpower, and hydro-electric utilities. Specifically, it establishes a temporary tax holiday for these utilities, reducing the tax rate to zero mills for a six-month period starting in January 2026. The bill also includes provisions for revenue-neutral reconciliation and requires transfers from specific tax funds to maintain funding levels for alternative fuels incentives.
Key provisions
- Temporarily reduces the gross receipts tax on electric utilities to zero mills for six months starting in January 2026.
- Requires electric utilities to report monthly gross receipts subject to tax to the Department of Revenue.
- Establishes a revenue-neutral reconciliation process, preventing adjustments to the tax rate.
- Mandates transfers from the Alternative Fuels Incentive Act to maintain funding levels.
- Addresses apportionment of gross receipts for utilities operating in multiple states.
Who is affected
- Electric light companies
- Waterpower companies
- Hydro-electric companies
- Consumers of electricity
- The Department of Revenue
Notable changes
- Creates a temporary tax holiday for electric utilities.
- Modifies the revenue-neutral reconciliation process.
- Requires specific transfers of funds to maintain existing incentive programs.
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