This bill proposes a temporary suspension of the sales and use tax, as well as the societal benefits charge, on electric and gas public utility bills for a four-month period, specifically from June 1, 2025, to September 30, 2025. During this time, electric and gas utility services will be exempt from the tax imposed under the Sales and Use Tax Act, and public utilities will not be allowed to charge customers the societal benefits charge. The intent behind this legislation is to provide financial relief to ratepayers in light of anticipated increases in electricity rates, which are projected to rise by 17.2 to 20.2 percent for residential customers starting in June 2025.

The bill highlights concerns regarding the excess revenue generated from the societal benefits charge, which has been used for purposes outside its original intent, amounting to approximately $704.2 million from Fiscal Years 2021 through 2024. By suspending these charges, the sponsors aim to alleviate the financial burden on consumers facing rising utility costs. The act is set to take effect immediately upon passage and will expire on October 1, 2025.