Bill > S4765

Introduced Session

This bill temporarily suspends the imposition of the sales and use tax, as well as the societal benefits charge, on customer bills for electric and gas utility service. Under the bill, the temporary suspension applies beginning on January 1, 2026 and through December 31, 2026. This bill is intended to provide electric and gas utility ratepayers with relief from recent increases in electric and gas utility charges. The average residential customer is estimated to save between $170 and $233 on their electric bill and between $178 and $308 on their gas bill as a result of the bill. Starting in June 2025, electricity rates for residential customers increased from 17.2 percent to 20.2 percent, depending on the supplier. Consequently, the State anticipates $1.15 billion in Fiscal Year 2026 sales and use tax collections from energy and utility sales, an increase of $155.9 million, or 15.7 percent, from the amount the collected in Fiscal Year 2024. Revenues generated by the societal benefits charge are primarily used to finance the State's Clean Energy Program, the Charge Up New Jersey Electric Vehicle Incentive Program, and energy assistance programs through the Universal Services Funds. According to the FY 2026 Governor's Budget, the State anticipates $637.5 million in social benefits charge revenues in FY 2026.

AI Summary

Committee Categories

Joe Pennacchio (R)*,  Latham Tiver (R)*,  Carmen Amato (R),  Kristin Corrado (R), 

Introduced in the Senate, Referred to Senate Environment and Energy Committee (on 10/27/2025)

Official Document