New York Assembly Bill A10938

New York 2025-2026 Regular Session

• Introduced: 4/14/26
• Refer: 4/14/26

Caption

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

Summary

A10938 would create two temporary tax relief measures related to energy costs. First, it establishes a one-year “utility bill tax and surcharge holiday” beginning 14 days after the bill takes effect, during which utility customers would be exempt from the gross receipts tax, sales tax, and several utility-related surcharges, including the system benefits charge, temporary state assessment/incremental state assessment charge, and renewable portfolio standard charge. Utility companies would be required to reduce customer bills by the amount of those exempt taxes and surcharges. Second, the bill creates a two-year “green energy tax holiday” that would prohibit tariffs or surcharges on utility ratepayers for the construction or implementation of renewable energy systems, electric vehicle ready infrastructure, and electric vehicle charging stations. The measure also directs the state comptroller, in consultation with the Division of the Budget, to transfer money from the general fund to replace revenue that would otherwise have been deposited during the utility tax holiday period. The bill takes effect immediately.

Impact

The bill would amend the Tax Law and State Finance Law by adding new sections 47-a, 47-b, and 89-l. It would temporarily suspend certain state taxes and utility-related charges on customer bills, require corresponding price reductions by utility companies, and shift the fiscal burden to the general fund to offset lost revenue. It would also limit the ability to impose certain tariffs and surcharges related to renewable energy and electric vehicle infrastructure for two years, affecting utilities, ratepayers, and state revenue accounts tied to energy programs.

Sentiment

The available record shows the bill was introduced and referred to the Assembly Committee on Ways and Means, but there are no recorded committee transcripts or votes in the provided materials. Based on the bill’s caption and structure, it appears intended as consumer and ratepayer relief, particularly for utility customers facing energy-related charges, while also promoting renewable energy and EV infrastructure by temporarily suspending related surcharges. Because no debate or vote history is provided, there is no documented formal support or opposition in the record here.

Contention

The main likely point of contention is fiscal impact: the bill would reduce utility-related tax and surcharge collections and require a transfer from the general fund to make up for the lost revenue. That could draw concern from budget officials and lawmakers focused on state finances. Another potential issue is policy scope, since the bill not only relieves utility customers of taxes and surcharges but also blocks certain renewable-energy and EV-related tariffs for two years, which could be viewed either as helpful consumer relief or as interference with existing clean-energy funding mechanisms. No specific objections or supporters are identified in the provided materials.