# Plain Language Summary: Anti-Congestion Tax Act

This bill is designed to block federal funding for New York City's transit system unless the city exempts drivers from paying congestion fees when they've already paid tolls on certain bridges and tunnels. Specifically, it targets New York City's congestion pricing program, which charges vehicles a fee to enter Manhattan below 60th Street. The bill says that if drivers have already paid tolls to cross the Holland Tunnel, Lincoln Tunnel, George Washington Bridge, or other crossings leading into that zone, they should get a credit—essentially a dollar-for-dollar reduction—on their congestion toll. Without this exemption in place, the federal government cannot award capital investment grants to the Metropolitan Transportation Authority, which funds major transit projects like subway improvements and bus system upgrades.

The bill also adds a tax credit that allows individual taxpayers to deduct congestion tolls they've paid from their federal income taxes. So if you paid $15 to cross one of these bridges or tunnels before entering the congestion zone, you could claim that $15 as a credit on your tax return. This means you'd owe less in federal taxes. The tax credit applies to any tolls paid on the qualifying crossings during the year.

The practical effect is that this bill attempts to make congestion pricing less expensive for drivers who are already paying tolls to enter the city, while also using federal funding as leverage to force New York City to implement these exemptions. For regular commuters and drivers, it could mean lower overall costs if they frequently cross these bridges and tunnels. However, it also reduces federal transit funding unless the city complies with the exemption requirement, which could impact public transportation improvements that benefit everyone.

Anti-Congestion Tax Act

Gottheimer, Josh

Anti-Congestion Tax Act This bill prohibits the Department of Transportation (DOT) from awarding capital investment grants to the Metropolitan Transportation Authority (MTA) for projects in New York until DOT certifies that vehicles using certain crossings to enter into Manhattan's congestion tolling zone&nbsp;receive exemptions from congestion tolls.&nbsp;The vehicular crossings include the Holland Tunnel, the Lincoln Tunnel, the George Washington Bridge,&nbsp;and any other crossing immediately before entry into the congestion tolling zone.As background, the&nbsp;MTA's Central Business District Tolling Program for New York City charges drivers a toll to enter an area in Manhattan designated as the Congestion Relief Zone.&nbsp;Under the bill, congestion tolling zone generally means any roadways, bridges, tunnels, approaches, or ramps that are located within, or enter to, the Congestion Relief Zone, with some modifications.Specifically, the bill requires the MTA to credit a vehicle for the vehicular crossing toll from the amount of the congestion toll charged to the vehicle for entering the congestion tolling zone.Further,&nbsp;the bill allows drivers entering Manhattan using any of the vehicular&nbsp;crossings immediately before entry into the congestion tolling zone&nbsp;to receive a federal tax credit at the end of the year equal to the amount paid in congestion tolls for using the crossing.&nbsp;