It is intended to help fund the Property Tax Rent Rebate Program expansion for senior citizens. This will be an advantage for individuals as well as businesses, but the major advantage is for natural gas deregulation and the associated natural gas industry. Last session, proponents of deregulation could not resolve strategic issues because of this associated cost. Most of the cost of deregulation is from utility gross receipts tax losses. Consumers can now avoid the gross receipts tax when the supplier is an entity other than a Pennsylvania utility.
Full deregulation means that all gas can be purchased from non-utility suppliers.
These relatively smaller cost issues are not addressed in the budget. Most of the cost effects the General Fund, and a minor portion effects the Alternative Fuels Restricted Receipt Account. The cost effects the Hazardous Waste Fund as well as the General Fund. A company may continue to carry forward losses to offset taxable income for ten years. This reduction affects multi-state companies.