(WVEC) -- Anyone who pays a monthly utility bill might to see a small amount of savings.
The recently passed Tax Cuts and Jobs Act, slashed the federal corporate income tax by 14 percent.
Virginia’s major utilities receive the benefits of that tax cut and the state of Virginia says if the utilities are saving money so too should their customers.
“I think that would be pretty sweet because I’d be paying less money out of my pocket,” said Lyneah Henson of Norfolk.
“That’s great news. Why is that going to happen,” asked Leigh Carran of Chesapeake.
Carran, like most, is unaware that you don’t have to own a corporation in order to benefit from cuts to the federal corporate income tax.
“I think everybody is wondering how the tax cuts or that whole bill is going to affect them personally and I haven’t gotten a good grip on that yet,” said Carran.
In 2017, utilities were paying a 35 percent federal income tax. That cost was then passed on to their customers. On January 1, the tax rate was slashed to 21 percent.
According to the state of Virginia, it’s only fair that that savings is also passed on to the customer.
“So this is a substantial savings for these companies and so I believe it would be appropriate for us to expect a saving in our individual household utility bills,” said David Chase, with the Virginia Society of CPA’s.
Chase said exactly how much savings households can expect to see is yet to be determined.
“There are other costs that the utility companies are used to receiving that they will no longer receive, those are going to be added back,” said Chase. “It’s not going to be a 14 percent reduction across the board.”
That’s okay with Henson, any savings is appreciated.
“I’m never looking forward to a bill, every time I get one I think it’s going to be higher especially with the weather being so cold the thought they could be lower makes me really happy,” said Henson.
Businesses, like Gramby Street Pizza, said it’s a trickle down affect. The savings passes from the utility company, to the business, all the way back to the employees.
“Every dollar does count for a small business, like ours,” said owner Peter Freda. “It goes a long way, you can put it back into your business you can give it to people in raises.”