Putting Pennsylvania Families First 

HARRISBURG – The Senate approved legislation to dramatically decrease costs for Pennsylvania families by cutting taxes on electric bills and school supplies, strengthening the state’s Educational Improvement Tax Credit (EITC) program and eliminating the current sales tax exemption for data centers, according to Sen. Gene Yaw (R-23), who supported the measure.  

“This legislation delivers meaningful relief where Pennsylvania families need it most,” Yaw said. “We’re making it easier for parents and taxpayers to keep more of what they earn while expanding opportunity for students. Just as importantly, we’re ensuring large data centers pay their fair share instead of shifting costs onto ratepayers.”

Making up the largest tax cut in Pennsylvania history, the proposal would eliminate the gross receipts tax on electric bills and require utility companies to pass the reduction on to consumers, saving ratepayers more than $1.7 billion over the first year. It would also implement a two-week sales tax holiday in August for school supplies, such as book bags, crayons, textbooks and tablets.  

The highly successful EITC program, which provides scholarships to help families send children to schools that best meet student needs, would receive an additional $25 million under the legislation, bringing the total to $705 million. EITC scholarships remain a Senate Republican priority for empowering Pennsylvania parents.  

House Bill 1667, as amended by the Senate, would also respond to concerns being raised across the commonwealth by eliminating the existing sales tax exemption for data centers. 

The Senate action comes at a time when hardworking Pennsylvania families are laser-focused on the issue of affordability. The bill now moves to the House of Representatives for consideration. 

CONTACT: Elizabeth Weitzel
717-787-3280