💲 NJ may refund E-ZPass tolls for commuters
💲 It can be in the form of a refund or a tax relief
💲 Competing bills face an uncertain future
The New Jersey state legislature is still on summer recess, but some lawmakers hope they can provide relief for commuters when they return in the fall.
After toll roads have been increased several times in recent years and there is now the prospect of reviving the introduction of a congestion toll all the way to Manhattan, there are now bipartisan efforts to refund the tolls to motorists.
Various legislative proposals, from one-time refunds to permanent tax relief, are still stalled.
The proposal that would provide the greatest savings to motorists is a bill that would provide a full tax deduction (up to $1,000) for tolls paid with E-ZPass.
Image: Townsquare Media
This bill is sponsored by Democratic Senator Patrick Deignan and Republican Senator James Holzapfel.
Deignan told NJ.com, “Basically, it’s about giving tax breaks to people who have to commute to make a living.”
In addition to tolls on the Turnpike, Parkway and Atlantic City Expressway, the Deignan/Holzapfel bill would also include border crossings into New York and Pennsylvania.
The bill states that the reimbursements would apply to “all toll roads within the state and all interstate bridges and tunnels connecting to New Jersey.”
Other similar bills would limit the amount of deduction an individual can claim and/or set thresholds at which the deduction can be claimed.
A one-time refund
Rep. Paul Kanitra (R-Ocean) proposed an alternative to the tax deduction.
His bill would give commuters a one-time refund directly to their E-ZPass account.
Under the bill, New Jersey would establish a $250 million toll relief fund, from which 50% of the tolls paid in a single year on the Turnpike, Parkway and Atlantic City Expressway would be refunded directly to the E-ZPass account.
Kanitra’s plan does not provide for reimbursement of tolls for crossing the Hudson or Delaware Rivers.
NJ Legislation
Passage is uncertain
None of the nearly a dozen bills introduced made any headway.
However, Deignan is convinced that his bill has a chance of moving forward when the state parliament resumes its work in a few weeks.
Even if one of the proposals receives approval from the legislature and is signed into law by Governor Phil Murphy, commuter tolls will still not be tax deductible.
The IRS only allows deductions for travel expenses that are directly related to business operations, not for general commuting expenses.
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