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A 10938

Provides a one-year utility bill tax and surcharge holiday and two-year green energy tax holiday

2025 Regular Session Introduced by Ken Blankenbush and 5 co-sponsors

Provides a one-year utility bill tax/surcharge holiday and a two-year green energy tax holiday to cut bills and spur renewable energy and EV infrastructure.

REFERRED TO WAYS AND MEANS
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WeVote Research Nonpartisan
Bill Summary · A 10938

Summary of New York Assembly Bill A.10938 (2025-2026)

Title

Provides a one-year utility bill tax and surcharge holiday and a two-year green energy tax holiday

Purpose and intent

  • Create temporary financial relief for utility customers by exempting certain taxes and surcharges during a defined period.
  • Promote accelerated deployment of renewable energy and electric vehicle (EV) infrastructure by suspending certain tariffs and charges related to green energy and EV readiness.

Key provisions

1) Utility bill tax and surcharge holiday (Tax Law new §47-a)

  • Effective period: Begins 14 days after the act’s effective date and ends one year later (the “applicable period”).
  • What is exempted (during the applicable period):
    • Taxes on utility customers:
    • Gross receipts tax
    • Sales tax
    • Surcharges on utility customers:
    • System Benefits Charge
    • Temporary State Assessment/Incremental State Assessment Charge
    • Renewable Portfolio Standard (RPS) Charge
  • Price action by utilities: During the applicable period, utility companies must reduce the price of services by the amount that would have been collected as tax and surcharges but for the exemption. This creates a direct passthrough reduction in customer bills equivalent to the foregone taxes/surcharges.

2) Green energy tax holiday (Tax Law new §47-b)

  • Temporary prohibition on tariffs/surcharges related to:
    • Construction or implementation of renewable energy systems (as defined in Public Service Law §66-p)
    • Electric vehicle (EV) ready infrastructure (per Energy Law §11-104)
    • Electric vehicle charging stations (per Energy Law §11-104)
  • Duration: Two years after the act’s effective date.
  • Effect: No tariff or surcharge may be imposed on any utility ratepayer for these green energy-related projects during the two-year period.

3) Administrative and fiscal mechanics (State Finance Law new §89-l)

  • Comptroller, within 45 days after the applicable period (per §47-a), must transfer from the General Fund an amount equal to the revenue that would have been deposited into certain state accounts if the exemptions had not been authorized.
  • This mechanism presumably ensures budgetary neutrality or compensation to affected funds by redirecting state resources back into the fiscal framework after the exemption period ends.

Effective date

  • The act provides immediate effect upon enactment (takes effect immediately).

Who and what is affected

  • Utility customers in New York: benefit from tax and surcharge exemptions and price reductions during the one-year applicable period.
  • Utility companies: required to implement price reductions corresponding to the avoided taxes and surcharges.
  • Renewable energy projects, EV infrastructure, and EV charging stations: shielded from tariffs/surcharges for two years, potentially lowering upfront project costs and improving project viability.
  • State budget and fiscal administration: Comptroller and Division of the Budget coordination for post-period transfers to maintain fiscal balance.

Procedural/timeline notes

  • Bill introduced April 14, 2026; referred to Ways and Means.
  • Effective and operational periods are defined relative to the act’s effective date (not yet specified beyond “immediate” effectiveness).
  • The statutory transfer process to the General Fund is triggered within 45 days after the applicable period ends.

Potential impacts (high-level)

  • Short-term consumer relief on utility bills due to tax/surcharge exemptions and price reductions.
  • Temporary reduction in state receipts from exempted taxes and surcharges, offset by a post-period transfer to General Fund accounts per §89-l.
  • Encouragement of renewable energy and EV infrastructure investment through two-year tariff/surcharge relief.
  • Administrative burden on utilities to implement and verify the required price reductions and to comply with the exemption rules.

If you’d like, I can provide a practical, side-by-side comparison with current law, or draft plain-language FAQs for consumers and businesses.

Compiled from official sources — confirm details with the bill’s official record.

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