A bipartisan proposal in the New Jersey Senate would allow drivers who rack up significant toll costs to deduct up to $1,000 in E-ZPass payments from their state gross income taxes, offering targeted relief to commuters who rely on toll roads and interstate crossings.
Under the proposal, any individual taxpayer — regardless of filing status — would be eligible to deduct $1,000 from gross income in a taxable year if their E-ZPass toll payments exceed $1,000. The deduction would apply to tolls paid by the taxpayer or by any member of the taxpayer’s household for the operation of a motor vehicle.
The bill defines eligible tolls broadly, covering payments made on any toll roadway within New Jersey, as well as interstate bridges and tunnels linking the state with neighboring jurisdictions. Facilities operated by the Port Authority of New York and New Jersey, the Delaware River Joint Toll Bridge Commission, the Delaware River and Bay Authority, and the Delaware River Port Authority would all qualify under the legislation.
At the same time, the bill excludes several categories of payments from counting toward the $1,000 threshold. Fines, penalties, administrative or processing fees, reimbursed tolls, and tolls already claimed as business expenses under state or federal law would not be eligible.
If enacted, the deduction would take effect immediately and apply retroactively to taxable years beginning on or after Jan. 1, 2020 — a provision that could allow some drivers to amend prior returns. Sponsors say the measure is designed to ease the burden on commuters facing rising transportation costs, particularly those who have little choice but to use toll facilities for work and daily travel.
The proposal has been framed as a narrowly targeted tax break rather than a broad-based cut, aimed at drivers who consistently incur high toll expenses through E-ZPass use.
The bill has not yet been scheduled for a committee hearing.
Its like the State is saying “Fine, we wont double dip on this one”.
What a joke!
Maybe they should consider implementing, any funds paid towards a project or entity that the State is generating revenue from, should be Tax exempt?
Okay guys, stay off the highways in December, when people who discover that their tolls since January were only $400 clog traffic, driving up and down the turnpike to rack up another $600 to accumulate their $1000.