Repeals the gross earnings tax on electric and gas companies.
H6013 amends Rhode Island’s public service corporation tax law to temporarily suspend the gross earnings tax imposed on electric and gas companies. Under current law, electric utilities are taxed at 4% of gross earnings and gas companies at 3% of gross earnings; this bill would suspend that tax rate for those companies beginning January 1, 2026, through January 1, 2035. The bill does not change the tax rates for other categories of public service corporations, such as telecommunications, cable, rail, ferry, water, or toll bridge companies.
The measure is framed as a tax relief or tax repeal bill for electric and gas utilities, with a delayed effective date of January 1, 2026. By suspending the tax rather than permanently deleting the statutory language, it would pause the state’s ability to collect this gross earnings tax from affected energy utilities for the specified period. The bill would therefore reduce state tax revenue from electric and gas companies and could affect utility rate-setting, utility finances, and potentially customer costs depending on how utilities respond.
The available context shows no recorded committee testimony or votes, so there is no documented public debate in the provided materials. Based on the bill caption and text, the general sentiment appears to favor tax relief for electric and gas companies, but the absence of transcripts or vote history means that support or opposition cannot be measured directly from the record provided.
The main point of contention likely concerns the fiscal impact on state revenues versus the benefit to utilities and, indirectly, ratepayers. Supporters would likely view the suspension as a way to reduce utility tax burdens, while critics could argue it removes a revenue source from the state without a clear public benefit or could shift costs elsewhere. Because the bill only suspends the tax for electric and gas companies, another possible issue is whether it treats those utilities differently from other public service corporations that remain taxed under existing law.
This bill would amend Rhode Island General Laws chapter 44-13 by suspending the gross earnings tax on electric and gas utilities from January 1, 2026, through January 1, 2035. It would leave the existing tax structure in place for other public service corporations, including telecommunications, cable, rail, ferry, water, and toll bridge businesses. The practical effect would be to reduce or eliminate the state tax liability of affected electric and gas companies during the suspension period and decrease related state revenue.
No committee transcript or vote record is provided, so there is no direct evidence of debate or recorded support/opposition. The bill’s caption and text suggest a generally favorable posture toward tax relief for electric and gas companies, but the available record does not show whether lawmakers, stakeholders, or the public were divided on the proposal.
The likely contention is fiscal: supporters may argue that suspending the gross earnings tax helps electric and gas utilities and could ease pressure on rates or investment, while opponents may focus on the loss of state revenue and question whether utilities should receive a tax suspension. A secondary issue is policy fairness, since the bill singles out electric and gas companies while leaving other public service corporations subject to their existing tax rates.