The Anti-Congestion Tax Act is a proposed bill that ties federal funding for New York City’s Metropolitan Transportation Authority (MTA) to a policy that exempts certain drivers from congestion tolls. Specifically, it would require the federal Secretary of Transportation to certify that vehicles entering the Manhattan congestion tolling zone via pre-entry crossings (Holland Tunnel, Lincoln Tunnel, George Washington Bridge, and similar crossings) receive an exemption equal to the toll charged for that crossing just before entering the tolling zone. The bill also creates a new federal income tax credit (Sec. 30E) allowing taxpayers to offset their taxes by the amount of congestion tolls paid for those same pre-entry crossings, with rules to prevent double benefits. The congestion tolling zone is defined as parts of Manhattan south of and including 60th Street (excluding the Franklin D. Roosevelt Drive). The credit would apply to taxable years after enactment. In short, the bill would (1) condition certain MTA capital grants on toll exemptions for pre-entry crossings into the tolling zone, and (2) provide a new federal tax credit for toll payments made on those crossings, intended to offset the cost of congestion tolls for drivers.
Key Points
- 1Condition on grants to MTA: No capital investment grant awarded under 49 U.S.C. 5338(d) for New York projects unless the Secretary of Transportation certifies that vehicles entering the congestion tolling zone through pre-entry crossings receive an exemption equal to the crossing toll charged just before entry.
- 2George Washington Bridge rule: For the GW Bridge, the exemption is to be treated the same as how a vehicle crossing the Henry Hudson Bridge is treated on the first date a congestion toll is charged.
- 3Congestion tolling zone definition: The tolling zone covers roadways entering or within Manhattan south of and including 60th Street, to the extent practicable, but explicitly excludes the Franklin D. Roosevelt (FDR) Drive.
- 4Tax credit for congestion tolls: A new Sec. 30E is added to the Internal Revenue Code allowing a nonrefundable credit against an individual’s income tax for the tolls paid during the year for the qualified crossings prior to entering the tolling zone. Qualified crossings include the Holland Tunnel, Lincoln Tunnel, GW Bridge, and other crossings used just before entering the tolling zone.
- 5No double benefit: The credit for congestion tolls cannot be claimed if another deduction or credit for the same tolls is taken, ensuring taxpayers don’t double-dip.
- 6Effective date: The grant-conditioning and the tolling-zone provisions apply to grants awarded after tolls begin charging in the zone; the tax credit applies to taxable years beginning after enactment.