The "Energy Cost Reduction Act" proposes to exempt residential customers from the sales and use tax on purchases of natural gas and electricity. Under this bill, public utilities that provide these services will be required to deduct the amount of the sales and use tax from each customer's bill at the end of each monthly billing cycle. This measure aims to alleviate the financial burden on residents amid increasing energy costs.

The bill mandates that the Director of the Division of Taxation, in collaboration with the Board of Public Utilities, establish necessary rules and regulations to implement these provisions. The act is designed to take effect immediately upon passage, providing immediate relief to residential customers by reducing their overall energy expenses.