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 expected to rise by 17.2 to 20.2 percent starting in June 2025.

The bill highlights concerns regarding the financial burden on consumers due to rising utility costs and the excessive revenues generated from the societal benefits charge, which have been redirected for purposes outside its original intent. By suspending these charges, the sponsors aim to alleviate the financial strain on residents during a period of significant rate increases, while also addressing the surplus revenue collected through the societal benefits charge in previous fiscal years. The act is set to take effect immediately upon passage and will expire on October 1, 2025.