AN ACT EXEMPTING SMALL BUSINESSES FROM THE SALES AND USE TAXES ON ELECTRICITY AND NATURAL GAS.

Plain English Breakdown

The official source material does not provide details on how small businesses are defined or the financial impact on state revenue.

Small Businesses Get Tax Break on Electricity and Gas

This act removes sales and use taxes for small businesses when they buy electricity and natural gas.

What This Bill Does

• Removes the sales tax that small businesses pay when buying electricity.
• Removes the sales tax that small businesses pay when buying natural gas.

Who It Names or Affects

• Small businesses that buy electricity and natural gas

Terms To Know

Sales tax

A tax added to the price of goods or services when they are sold.

Use tax

A tax that must be paid by a person who uses, stores, consumes, or otherwise enjoys tangible personal property in Connecticut without paying sales tax on it.

Limits and Unknowns

• The bill does not specify how small businesses are defined.
• It is unclear what the financial impact will be for state revenue.

Official Summary Text

To exempt from the sales and use taxes the sale of electricity and natural gas to small businesses.

Current Bill Text

LCO No. 1023 1 of 1

General Assembly Proposed Bill No. 185
February Session, 2026 LCO No. 1023

Referred to Committee on FINANCE, REVENUE AND
BONDING

Introduced by:
SEN. SLAP, 5th Dist.

AN ACT EXEMPTING SMALL BUSINESSES FROM THE SALES AND
USE TAXES ON ELECTRICITY AND NATURAL GAS.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:

That chapter 219 of the general statutes be amended to exempt from 1
the sales and use taxes the sale of electricity and natural gas to small 2
businesses. 3
Statement of Purpose:
To exempt from the sales and use taxes the sale of electricity and natural
gas to small businesses.