This bill introduces a 30 percent surtax, known as the electric public utility windfall surtax, on the windfall income of electric public utilities in New Jersey. Windfall income is defined as the allocated taxable net income that exceeds 20 percent above the average allocated taxable net income of the utility over the previous five privilege periods. The bill specifies that this surtax is in addition to the regular corporation business tax liability and prohibits any credits against the surtax, except for certain payments related to prior periods.

Furthermore, the bill mandates that all revenues generated from the electric public utility windfall surtax, with the exception of amounts constitutionally allocated for open space, farmland, and historic preservation, will be appropriated annually to the Board of Public Utilities. The board is responsible for distributing these funds to the ratepayers of the electric public utilities subject to the surtax, ensuring that the distribution is proportional among all ratepayers. The bill is set to take effect immediately and will apply to privilege periods beginning on or after January 1 of the year following its enactment.