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 one-year period from January 1, 2026, to December 31, 2026. 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 for the societal benefits charge, which is typically used to fund various state energy programs.

The intent of the bill is to provide financial relief to ratepayers who have faced recent increases in utility charges, with estimated savings for average residential customers ranging from $170 to $233 on electric bills and $178 to $308 on gas bills. The bill is expected to impact state revenue, as it will result in a significant decrease in anticipated sales and use tax collections and societal benefits charge revenues, which are crucial for funding clean energy initiatives and energy assistance programs. The act will take effect immediately upon passage and will expire on January 1, 2027.