Bill > S4483

Introduced Session

This bill imposes a 10 percent surtax, to be called the electric public utility windfall surtax, on electric public utilities with allocated taxable net income in excess of $10 million to fund vital utility assistance programs that annually serve hundreds of thousands of people in this State. The bill defines "allocated taxable net income" to mean the same as the term "taxable net income" is defined in the "Corporation Business Tax Act," N.J.S.A.54:10A-1 et seq. for purposes of calculating a taxpayer's corporation business tax liability. The electric public utility windfall surtax is to be imposed in addition to the taxpayer's regular corporation business tax liability. No credits are to be allowed against the electric public utility windfall surtax, except for credits for installment payments, estimated payments made with a request for an extension of time for filing a return, or overpayments from prior privilege periods. All revenues collected from the electric public utility windfall surtax, except for amounts constitutionally dedicated for open space, farmland, and historic preservation, are to be annually appropriated to the Board of Public Utilities (board) for the funding of utility assistance programs. The bill prohibits the board from approving any rate increase or charge to ratepayers that includes the cost of compliance with its provisions. The board approved an increase in electricity rates, which will become effective in June 2025. According to the board, this increase will raise electricity bills by approximately 17 to 20 percent, depending on a ratepayer's electric public utility. Electricity and gas are not luxuries; they are essential services powering homes, schools, medical devices, and transportation. As the cost of living continues to rise and many wages stagnate, New Jersey residents need protection from utility rate increases, which exacerbate the effects of inflation on consumers. This bill aims to safeguard ratepayers by implementing regulatory measures that promote fairness and transparency in pricing. This bill is designed to ensure that excessive profits of electric public utilities are taxed and that the resulting revenues benefit utility assistance programs, without passing through the costs of compliance with the bill to ratepayers. This measure is a crucial step in addressing economic hardships and promoting fair electric public utility and gas public utility pricing. New Jersey families, individuals, and businesses deserve reliable, affordable energy without facing undue financial strain.

Committee Categories

Brian Stack (D)*,  Britnee Timberlake (D)*,  Renee Burgess (D), 

Introduced in the Senate, Referred to Senate Economic Growth Committee (on 05/19/2025)

Official Document