Large data centers would pay fees to fund household energy rebates

Covered data centers would pay Pennsylvania 10 cents for each kilowatt-hour they consume. Coverage includes Pennsylvania facilities, campuses, or linked facilities used mainly to handle computer data, with peak power demand of at least 25 megawatts. Facilities must connect to one or more public utilities. The business using the facilities must be covered by Article III or IV of Pennsylvania's Tax Reform Code. The act would take effect 60 days after becoming law and apply to tax years beginning after December 31, 2026.

The Pennsylvania Public Utility Commission would split available fee revenue equally among eligible energy customers as rebates. Recipients must live in Pennsylvania and regularly pay a Pennsylvania-based energy utility. Household income could not exceed $150,000 for single tax filers or $300,000 for joint filers. Rebates would apply only to an owner's main home or qualifying farm buildings. Covered data centers could not receive rebates. The commission would issue rebates within 120 days after each fiscal year ends.

Farm buildings would have to meet acreage, use, ownership, and property-tax rules to qualify for rebates. Buildings must mainly support commercial farming, such as storing farm products, sheltering farm animals, or storing farm equipment. The farm must have at least 10 adjoining acres and be an owner's main home. Buildings cannot already be exempt from property taxes or qualify for another property-tax reduction or exclusion.