Residential customers of Entergy Arkansas will see their monthly bills increase by an average of $15 beginning in January as a federal tax credit expires. The utility is notifying customers that tax credits that were implemented 21 months ago are now rolling off electric bills.
“We want all of our customers to be aware that the tax credit of nearly $230 million that has been returned to residential customers since April 2018 ends this month,” said Michael Considine, vice president of customer service.
“It’s important to note that this tax credit roll-off is not a rate increase. However, because the credit ends, this will affect bills going forward.”
Entergy said the credit was about $15 per 1,000 kilowatt hours used, noting that's about how much electricity a residential customer uses on average each month. The credit was higher for customers who used more electricity.
In December 2017, Congress passed the Tax Cuts and Jobs Act. The new law lowered the federal tax rate of 35% to 21%, which resulted in Entergy Arkansas crediting customers’ bills with the goal of returning to all customers nearly $500 million in accumulated deferred income tax. For residential customers, the total amount to be returned was nearly $230 million.
Read Saturday's Arkansas Democrat-Gazette for full details.