An Act amending the act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, in sales and use tax, further providing for exclusions from tax; in corporate net income tax, further providing for definitions, for determination of net loss deduction, for imposition of tax, for reports and payment of tax, for timely mailing treated as timely filing and payment and for additional withholding requirements, repealing provisions relating to consolidated reports, further providing for extension of time to file reports, for changes made by Federal Government, for limitations on assessments, for definitions, for manufacturing innovation and reinvestment deduction, for enforcement, rules and regulations and inquisitorial powers of the department, for retention of records and for penalties; in gross receipts tax, further providing for imposition of tax and providing for definitions; in tax credit and tax benefit administration, providing for application of tax credits or tax benefits to a unitary business; providing for educational tax credits and for education options tax credits; in manufacturing and investment tax credit, further providing for business firms and for tax credit certificates; providing for return on equity and for service and facilities; repealing provisions relating to Computer Data Center Equipment Incentive Program; providing for additional property tax rebate; in general provisions, providing for data centers; and, in general provisions, further providing for estimated tax, for underpayment of estimated tax and for restatement of tax liability under treaties and providing for data centers.

The bill's title and subject matter were changed from 'Gross Receipts Tax' to 'Sales and Use Tax,' altering the fundamental tax being regulated.

A new Article XVII-F was added to establish 'Educational Improvement and Opportunity Scholarship Tax Credits,' creating new eligibility for tax credits related to student scholarships.

The sunset date for the 'Revenue-Neutral Reconciliation' provision was extended from July 1, 2026, to July 1, 2027.

New definitions were added for various educational terms, including 'Eligible Student,' 'Low-Achieving School,' and 'Opportunity Scholarship,' to support the new scholarship tax credit program.

The definition of 'School Supplies' was expanded to include specific items like art supplies and instructional materials, and the price threshold for the sales tax exclusion was set at $50 or less per item.

The penalty for failing to pass through electric energy tax reductions to consumers was clarified to include 'additional relief as the court may deem appropriate' alongside the civil fine.

Establishes a mandatory annual transfer of $7 million from the new electric utility tax to the Alternative Fuels Incentive Fund starting in fiscal year 2026-2027.

Imposes a 4.4% gross receipts tax on electric light, waterpower, and hydro-electric companies for sales within Pennsylvania and from specific out-of-state producers.

Repeals Section 6 of the Alternative Fuels Incentive Act to allow for the new funding transfer mechanism.

Sets the expiration date for the new electric utility tax at July 1, 2026, and the repeal of the previous electric energy tax at the same date.

Creates civil penalties ranging from $1,000 to $5,000 for utilities that fail to pass the tax reduction or elimination directly to consumers.

Adds a new tax category for out-of-state electricity producers that have taken specific regulatory actions since December 21, 1977, subjecting them to apportionment rules.

Added Senators D. Williams, Neilson, Webster, Green, and Madsen to the list of bill sponsors.

Added specific application filing deadlines of February 1 for two distinct tax credit programs.

Increased the aggregate limit for tax credit certificates from $30 million to $60 million.

Increased the annual cap on tax credits from $6 million to $12 million.

Inserted new subsections detailing application requirements for Program One and Program Two tax credit authorities.