Billing discounts provided to low-income households - credit

From the 2024 DOR Tax Exemption Study

82.16.0497 - Billing discounts provided to low-income households - credit Description A light and power business or a gas distribution business may take a credit against public utility tax for up to 50% of billing discounts provided to low-income households or qualified contributions to a low-income home energy assistance fund. To qualify for the credit, the business must give billing discounts or qualifying contributions in excess of 125% of those given in fiscal year 2000 (or the first year the business provided billing discounts or qualified contributions). The total amount of credits available for all businesses is $2.5 million annually. Purpose To reduce energy costs for low-income persons. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes $2.500 $2.500 $2.500 $2.500 Local Taxes $0.000 $0.000 $0.000 $0.000 Repeal of Repealing this exemption would increase revenues. exemption Potential ($ in millions): revenue gains FY 2024 FY 2025 FY 2026 FY 2027 from full repeal State Taxes $0.000 $2.290 $2.500 $2.500 Local Taxes $0.000 $0.000 $0.000 $0.000 Assumptions - This repeal takes effect July 1, 2024, and impacts 11 months of collections in fiscal year 2025