New Jersey A 885: Increases value of Economic Redevelopment and Growth Grant program residential tax credits to $650 million; restricts $50 million of tax credits to certain qualified residential projects.

Bill Text

A885 

ASSEMBLY, No. 885 

STATE OF NEW JERSEY

222nd LEGISLATURE

� 

PRE-FILED FOR INTRODUCTION IN THE 2026 SESSION

Sponsored by:

Assemblyman GERRY SCHARFENBERGER

District 13 (Monmouth)

Assemblywoman VICTORIA A. FLYNN

District 13 (Monmouth)

SYNOPSIS

���� Provides $5,000 gross income tax deduction for 
taxpayers who incur certain commuter expenses.

CURRENT VERSION OF TEXT 

���� Introduced Pending Technical Review by Legislative 
Counsel.

�� 

An Act providing a gross income tax deduction for taxpayers 
who incur certain commuter expenses and supplementing chapter 3 of Title 54A of 
the New Jersey Statutes.

���� Be It 
Enacted by the Senate and General Assembly of 
the State of New Jersey:

���� 1.��� a.� A taxpayer shall be 
allowed a deduction from the taxpayer�s gross income for a taxable year in the 
amount, not to exceed $5,000, of the commuter expenses incurred by the taxpayer 
during the taxable year.

���� b.��� As used in this section, 
�commuter expenses� means 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� shall not include amounts:

���� (1)�� paid as a fine, penalty, 
or other payment made for a violation of a toll;

���� (2)�� paid as an 
administrative fee, processing fee, or other payment for the purpose of 
establishing an electronic toll collection system account, acquiring electronic 
toll collection system equipment, or other administrative purpose;

���� (3)�� reimbursed to the 
individual by or for the individual�s employer;

���� (4)�� deductible by the 
individual from federal adjusted gross income as an unreimbursed employee 
expense pursuant to section 162 of the federal Internal Revenue Code (26 U.S.C. 
s.162) but without regard to any limits or floor determined pursuant to section 
67 of the federal Internal Revenue Code (26 U.S.C. s.67), even if not so 
deducted;

���� (5)�� deductible in 
determining net profits from business pursuant to subsection b. of 
N.J.S.54A:5-1, even if not so deducted;

���� (6)�� deductible in 
determining distributive share of partnership income pursuant to subsection k. 
of N.J.S.54A:5-1, even if not so deducted; and

���� (7)�� deductible in 
determining net pro rata share of S corporation income pursuant to subsection 
p. of N.J.S.54A:5-1, even if not so deducted.

���� 2.��� This act shall take 
effect immediately and shall apply to taxable years beginning on or after 
January 1 of the year next following the date of enactment.

STATEMENT

���� 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.