Bill
Bill > A5476
NJ A5476
NJ A5476Provides $5,000 gross income tax deduction for taxpayers who incur certain commuter expenses.
summary
Introduced
03/20/2025
03/20/2025
In Committee
03/20/2025
03/20/2025
Crossed Over
Passed
Dead
Introduced Session
2024-2025 Regular Session
Bill Summary
This bill provides a gross income tax deduction of up to $5,000 for commuter expenses incurred by a taxpayer during a taxable year. The bill defines "commuter expenses" as the tolls paid by a taxpayer in the course of commuting by means of a motor vehicle to and from the taxpayer's workplace, which workplace is located within this State or a contiguous state. "Commuter expenses" do not include amounts that are: (1) paid as fines, penalties, or administrative fees; (2) reimbursed; and (3) deductible as business expenses or otherwise under certain provisions of State or federal law. Under current law, each taxpayer is permitted a personal exemption of $1,000, which amount is deducted from the taxpayer's gross income. Current law also allows certain taxpayers to claim various additional exemptions and deductions based on the characteristics and expenditures of the taxpayer. This bill provides that a taxpayer who incurs commuter expenses may deduct up to $5,000 from gross income, in addition to these existing exemptions and deductions.
AI Summary
This bill provides a new state income tax deduction of up to $5,000 for commuter expenses specifically related to toll payments when traveling to and from a workplace located in New Jersey or a neighboring state. The bill carefully defines "commuter expenses" by excluding certain types of payments, such as fines, penalties, administrative fees, reimbursed expenses, and expenses already deductible under other federal or state tax provisions. Taxpayers can claim this deduction in addition to existing personal exemptions and other tax deductions, meaning it represents an additional tax benefit for workers who regularly pay tolls during their commute. The deduction would apply to taxable years beginning on or after January 1 of the year following the bill's enactment, giving taxpayers a potential new method to reduce their state income tax liability by accounting for commuting costs associated with tolls.
Committee Categories
Transportation and Infrastructure
Sponsors (2)
Last Action
Introduced, Referred to Assembly Transportation and Independent Authorities Committee (on 03/20/2025)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.njleg.state.nj.us/bill-search/2024/A5476 |
| BillText | https://pub.njleg.gov/Bills/2024/A5500/5476_I1.HTM |
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