An Act amending the act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, in personal income tax, further providing for imposition of tax; in gross receipts tax, further providing for imposition of tax, providing for transfers to Alternative Fuels Incentive Fund and further providing for establishment of revenue-neutral reconciliation; eliminating the tax imposed upon each dollar of the gross receipts received from the sales of electric energy; providing for the benefit of consumers and for a civil penalty; and making a repeal.

This bill modifies Pennsylvania's tax laws by adjusting personal income tax rates and eliminating a specific tax on the gross receipts from the sale of electric energy. It requires electric utilities to pass the savings from these tax changes directly to consumers through reductions in state tax surcharges, with civil penalties of up to $5,000 for companies that fail to do so. Additionally, the legislation mandates that $6 million annually be transferred to the Alternative Fuels Incentive Fund starting in the 2024-2025 fiscal year. The bill also establishes a revenue-neutral reconciliation rule that will remain in effect until the end of 2024.