NJ Bill Proposes Tax Deductions for E-ZPass Tolls

EZPass EZ Pass exit lane for toll with sign text for entrance and left turn in Virginia

New Jersey lawmakers are considering a bill that would allow motorists to deduct their E-ZPass tolls from their state income tax. The bill, proposed by Democratic State Senator Patrick Diegnan from Middlesex and Republican State Senator James Holzapfel from Ocean, would permit drivers to deduct up to $1,000 from their state income taxes for travel on any toll road or bi-state bridge within New Jersey.

The proposal comes in response to multiple toll hikes in recent years and the potential revival of a congestion tolling plan to enter Manhattan. The lawmakers aim to provide relief to commuters who have been hit hard by these increases. "It’s basically to give tax relief to folks who have to commute to live their lives," Diegnan told NJ.com.

However, the bill's future remains uncertain. Introduced in January, it has yet to be assigned to a committee. If passed, New Jersey would join Massachusetts as the only states that allow deduction of state tolls and transit fares from state income tax.

Despite the challenges, Diegnan remains optimistic about the bill's chances. "I think the governor and senate president and speaker are concerned about giving tax relief to folks. I believe it has a good chance of passing," he said in an interview with Matzav.com.