At a time when costs are increasing across the board, Hoosiers will soon benefit from the elimination of a special tax on utility bills. The repeal means monthly savings for all customers beginning July 1, 2022.
The Utility Receipts Tax and Utility Services Tax is currently a 1.46% addition to energy bills based on usage. The elimination of this tax is one of many recent actions taken by the Indiana General Assembly and Governor Holcomb to support our state’s economy while benefitting Hoosier taxpayers.
Other states are increasing taxes, but Indiana is lowering them, which translates to cost savings for homeowners, businesses, and industries. That is why the state’s largest electric and natural gas providers supported its repeal.
The energy landscape continues to evolve not just internationally and nationally, but at the state level as well, and we know that cost, reliability, and sustainability are top of mind for Indiana residents and businesses looking to relocate and expand in the state.
Our companies are committed to delivering energy affordably and around-the-clock in every season. We are providing customer bill assistance and taking actions to lessen price volatility. We’re also investing billions of dollars over the coming years in Indiana to harden the electric grid against severe weather, replace aging natural gas pipeline infrastructure, support economic development and growth, and modernize our systems. These investments are critical to making sure that Indiana remains well-positioned to tackle resiliency, environmental, and reliability challenges while remaining dynamic to better serve our customers.
Eliminating the utility-specific tax was a smart decision by state officials to save taxpayers money, offset economic pressures on the energy industry, and keep Indiana competitive.
The Indiana Energy Association is a trade group representing 14 investor-owned electric and natural gas utilities, as well as a public charitable trust.