Pennsylvania families could soon get a break on two of the most stubborn household expenses: utility bills and back-to-school shopping.
What happened?
For electric customers, the central change is the removal of Pennsylvania's tax on power bills, with utility companies required to pass that reduction through to consumers.
If the proposal becomes law, customers would save more than $1.7 billion in the first year, WTAJ reported.
Parents would also get a tax-free window in August: a two-week break from sales tax on school supplies, including book bags, crayons, textbooks, and tablets.
Another part of the measure broadens Pennsylvania's Educational Improvement Tax Credit program, which uses tax credits to support scholarships and other educational initiatives.
To help offset the broader tax package, the bill would also end the current sales tax exemption for data centers.
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Why does it matter?
Electric bills and school shopping are recurring household expenses that can be hard to put off.
Energy costs often climb during periods of heavy air-conditioning use in summer and high heating demand in winter, so reducing electricity taxes could lower monthly bills.
The back-to-school tax holiday targets another major seasonal expense. Parents often experience a surge in spending in late summer, and even modest tax savings on supplies can add up when shopping for multiple children.
The proposal reflects a growing focus on policies that put money back in consumers' pockets.
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Strategies such as cutting energy waste at home and planning purchases around tax-free periods can help lower household expenses.
What's being done?
The Senate has already approved the bill, and it now heads to the House, according to WTAJ.
If the House also passes it and the governor signs it, the tax changes could begin affecting household budgets relatively quickly.
The legislation says utilities must reflect the tax cut in what customers pay, a step meant to make sure the savings show up on monthly bills.
Should the school supply tax holiday be finalized, eligible August purchases would include items such as backpacks, art supplies, and electronics used for school.
If the measure clears the House, it could deliver relief on monthly electric bills and during one of the year's most expensive shopping seasons.
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