Deal struck on manufacturers' tax relief

The governor has endorsed a plan to lower the state sales tax on energy consumption that manufacturers pay for utilities. The tax cut deal will be a break of 3/4 of a percentage point. The Chamber was shooting for a full point but the governor did move upwards from a half-point. This is an across the board tax cut for all manufacturers (of course, the definition of "manufacturer" has been central to the debate). Alternative tax relief bills have also been pending that target specific industries -- with this deal, those look less likely. This bill to provide tax relief for manufacturers is likely to see action this week, as will the bill to reduce the grocery tax by one percentage point.