Senate passes 'largest tax cut in Pennsylvania history'

HARRISBURG, Pa. (WHP) — The Pennsylvania Senate approved legislation Thursday that lawmakers say would be the largest tax cut in the state's history.If signed into law, the bill would eliminate the gross receipts tax on electric bills and require utility companies to pass the reduction on to customers. This would save taxpayers over $1.7 billion in the first year, according to a release from Senate Democrats.

Additionally, the bill would implement a two-week sales tax holiday in August for school supplies.

It will also allocate an extra $25 million toward the Educational Improvement Tax Credit program, which provides scholarships for students.

The bill also addresses a hot-button issue for Pennsylvanians; data centers would no longer receive a sales tax exemption for certain equipment.

"Affordability remains a concern for people in every community and addressing that challenge head on is essential to strengthening the economic stability and well being of our residents,” Senate Majority Leader Joe Pittman (R-41) said. “With passage of this legislation, we are supporting families, empowering parents, and taking a significant step forward to help ease the financial pressures that so many households are facing.”

The bill will now move to the House of Representatives for consideration. If the bill passes in the house, it will land on Gov. Josh Shapiro's desk to sign into law.

Source: Local21news