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Bill > A885
NJ A885
NJ A885Provides $5,000 gross income tax deduction for taxpayers who incur certain commuter expenses.
summary
Introduced
01/13/2026
01/13/2026
In Committee
01/13/2026
01/13/2026
Crossed Over
Passed
Dead
Introduced Session
2026-2027 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 allows taxpayers to deduct up to $5,000 in commuter expenses from their gross income, which is the total amount of income a taxpayer receives before any deductions. Commuter expenses are defined as tolls paid while driving a motor vehicle to and from a workplace located in New Jersey or a neighboring state. However, this deduction does not apply to fines, penalties, administrative fees related to toll collection systems, expenses reimbursed by an employer, or any costs that can already be deducted as business expenses under state or federal law, such as unreimbursed employee expenses. This new deduction is in addition to existing personal exemptions and other deductions taxpayers may already claim.
Committee Categories
Transportation and Infrastructure
Sponsors (2)
Last Action
Introduced, Referred to Assembly Transportation and Independent Authorities Committee (on 01/13/2026)
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/2026/A885 |
| BillText | https://pub.njleg.gov/Bills/2026/A1000/885_I1.HTM |
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