Senator Latham Tiver (R-8) and Senator Joe Pennacchio (R-26) introduced legislation that would alleviate the burden of rising energy costs by suspending the sales and use tax, as well as the Societal Benefits Charge (SBC) on electric bills.
The pair introduced similar legislation in May to help lower energy bills when costs typically peak during the summer, but the bill was never brought up for a vote. When pressed about the Republican plan to reduce energy costs, Governor Murphy defended the added taxes as necessary for the Board of Public Utilities—an agency poised for a major financial windfall. The State anticipates $1.15 billion in tax collections from energy bills in Fiscal Year 2026, a 15.7% increase of nearly $156 million from FY24.
“Governor Murphy and Trenton Democrats have made their priorities clear—they’re more interested in collecting your tax dollars than helping families who need relief from soaring energy bills,” said Sen. Tiver. “New Jersey has an affordability crisis, and our plan puts taxpayers first by suspending unnecessary sales tax and SBC collections for the entire year of 2026. We cannot continue to feed the bloated bureaucracy at the BPU while our families are forced to choose between paying their electric bill or purchasing prescriptions.”
The Tiver, Pennacchio bill would suspend the sales and use tax and the SBC on electric and gas utility bills for one year beginning January 1, 2026. The proposal is expected to save the average household hundreds of dollars on energy costs.
“The summer has come and gone, and families are still waiting for relief from Trenton,” said Sen. Pennacchio. “While Democrats touted a $100 gimmick as a solution, they balked on our plan to provide real, substantial savings to New Jersey families. There’s a lot more work to do to lower energy bills and expand power generation, but our proposal is a critical first step toward easing the burden of rising energy costs.”
