New PA Relief Package: Tax Exemption, Energy Assistance, Hospitality Industry Grants

Friday, the Senate and House passed and Gov. Wolf signed Senate Bill 109 (Pittman-R-Indiana) into law that provides $912 million in economic, rent, utility and other relief to businesses, school districts and individuals, all but $145 million from federal funds.

            Here are the major provisions that affect PPA members.

            Tax Exemption

            The House added a provision to the bill to specifically exempt income received from the federal Paycheck Protection Program and individual stimulus checks from the state’s Personal Income Tax.

            Energy Assistance

            A new $570 million Rental And Utility Assistance Grant Program would appropriate money to counties to provide aid to households meeting need requirements based on income level to pay rent and home energy costs, including fuel oil and propane.

The state Department Human Services would develop the eligibility requirements and application process for the new program.

These programs will be separate from LIHEAP.

PPA suggests member companies whose customer base includes this category reach out to their county government to inquire as to its plan for the issuance of these grants.

Hospitality Industry

The new law also creates a $145 million Hospitality Industry Recovery Program allocated to all 67 counties to be administered by local economic development agencies.  There is a cap of $50,000 on the grants awarded under this program.

The program is funded by a $145 million loan from the state Workers’ Compensation Security Fund that must be paid back by July 2029, hopefully with additional federal COVID relief funds.

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