Federal

Anti-Congestion Tax Act

Source: Congress.gov · 948 words in original text

What This Bill Does

This bill ties federal transportation grants to the Metropolitan Transportation Authority to congestion fees (tolls charged to drive into certain areas). The bill says the Secretary of Transportation cannot award certain federal grants until drivers using specific bridges and tunnels get a credit equal to what they paid at those crossings before entering the congestion tolling zone. The bill also creates a federal tax credit for tolls paid at those same crossings.

Who It Affects

The Metropolitan Transportation Authority receives federal grants. Drivers who use the Holland Tunnel, Lincoln Tunnel, George Washington Bridge or other vehicular crossings immediately before entering the congestion tolling zone are affected. Taxpayers who pay these tolls are affected. The Secretary of Transportation makes decisions about grants.

Key Provisions

• The Secretary of Transportation cannot award capital investment grants to the Metropolitan Transportation Authority until drivers using the Holland Tunnel, Lincoln Tunnel, George Washington Bridge or other vehicular crossings receive a credit equal to what they paid at those crossings, which gets subtracted from their congestion toll (Sec. 2(a)) • Vehicles crossing the George Washington Bridge must be treated the same way as vehicles crossing the Henry Hudson Bridge on the first day the congestion toll is charged (Sec. 2(b)) • Taxpayers can claim a federal tax credit for congestion tolls they paid at qualified vehicular crossings immediately before entry into the congestion tolling zone (Sec. 3(a)) • A person cannot claim both a tax deduction and this tax credit for the same congestion toll (Sec. 3(c))

What Changes

If this becomes law, the Secretary of Transportation must verify that toll credits are in place before awarding federal grants to the Metropolitan Transportation Authority. Drivers would receive toll credits at certain crossings. Taxpayers could claim a federal tax credit for tolls paid at those same crossings on their taxes.

Important Definitions

Congestion toll: A toll charged for entry into or remaining in the congestion tolling zone (Sec. 2(d)(1)) Congestion tolling zone: Any roadways, bridges, tunnels, approaches or ramps within the borough of Manhattan south of and including Sixtieth Street as much as practicable, but not including the Franklin D. Roosevelt Drive (Sec. 2(d)(2)) Qualified vehicular crossing: The Holland Tunnel, Lincoln Tunnel, George Washington Bridge or any other vehicular crossing used immediately before entry into the congestion tolling zone (Sec. 3(b))

Effective Date

The provisions tying grants to toll credits apply to grants awarded on or after the first date the congestion toll is charged (Sec. 2(c)). The tax credit applies to taxable years beginning after the date this bill becomes law (Sec. 3(c)).

I 118TH CONGRESS 1ST SESSION H. R. 422 To condition the receipt of certain grants by the Metropolitan Transportation Authority on exempting certain drivers from congestion fees, and for other purposes. IN THE HOUSE OF REPRESENTATIVES JANUARY 20, 2023 Mr. GOTTHEIMER (for himself, Mr. VAN DREW, and Mr. LAWLER) introduced the following bill; which was referred to the Committee on Ways and Means, and in addition to the Committee on Transportation and Infra- structure, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdic- tion of the committee concerned A BILL To condition the receipt of certain grants by the Metropolitan Transportation Authority on exempting certain drivers from congestion fees, and for other purposes. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Anti-Congestion Tax 4 Act’’. 5 VerDate Sep 11 2014 06:35 Jan 31, 2023 Jkt 039200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H422.IH H422 pbinns on DSKJLVW7X2PROD with $$_JOB 2 •HR 422 IH SEC. 2. CONDITION ON RECEIPT OF CAPITAL INVESTMENT 1 GRANTS. 2 (a) IN GENERAL.—Notwithstanding any other provi- 3 sion of law, the Secretary of Transportation may not 4 award a capital investment grant described in section 5 5338(d) of title 49, United States Code, to the Metropoli- 6 tan Transportation Authority for a project in New York 7 State until the Secretary certifies that any vehicle entering 8 the congestion tolling zone using a vehicular crossing 9 known as the Holland Tunnel, the Lincoln Tunnel, or the 10 George Washington Bridge, or any other vehicular cross- 11 ing for the use of crossing immediately before entry into 12 the congestion tolling zone, receives an exemption as fol- 13 lows: The vehicle is credited an amount equal to the toll 14 charged to such vehicle for the use of such crossing imme- 15 diately before entry into the congestion tolling zone from 16 the amount of the congestion toll charged to such vehicle 17 for purposes of entering the congestion tolling zone. 18 (b) RULE OF CONSTRUCTION FOR GEORGE WASH- 19 INGTON BRIDGE.—For purposes of subsection (a), a vehi- 20 cle receives an exemption while crossing the George Wash- 21 ington Bridge if such vehicle is treated in the same man- 22 ner as a vehicle crossing the Henry Hudson Bridge is 23 treated on the first date on which the congestion toll is 24 charged. 25 VerDate Sep 11 2014 06:35 Jan 31, 2023 Jkt 039200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H422.IH H422 pbinns on DSKJLVW7X2PROD with $$_JOB 3 •HR 422 IH (c) EFFECTIVE DATE.—Subsection (a) shall apply 1 with respect to a grant awarded on or after the first date 2 on which the congestion toll is charged. 3 (d) DEFINITIONS.—In this section, the following defi- 4 nitions apply: 5 (1) CONGESTION TOLL.—The term ‘‘congestion 6 toll’’ means a toll charged for entry into or remain- 7 ing in the congestion tolling zone. 8 (2) CONGESTION TOLLING ZONE.—The term 9 ‘‘congestion tolling zone’’ means any roadways, 10 bridges, tunnels, approaches, or ramps that are lo- 11 cated within, or enter to, the geographic area in the 12 borough of Manhattan south of and inclusive of Six- 13 tieth Street to the extent practicable, but does not 14 include the Franklin D. Roosevelt Drive. 15 SEC. 3. CREDIT FOR CERTAIN CONGESTION TOLLS. 16 (a) IN GENERAL.—Subpart B of part IV of sub- 17 chapter A of chapter 1 of the Internal Revenue Code of 18 1986 is amended by adding after section 30D the fol- 19 lowing new section: 20 ‘‘SEC. 30E. CERTAIN CONGESTION TOLLS. 21 ‘‘(a) IN GENERAL.—There shall be allowed as a cred- 22 it against the tax imposed by this chapter for the taxable 23 year an amount equal to the sum of any congestion toll 24 (as such term is defined in section 2(d) of the Anti-Con- 25 VerDate Sep 11 2014 06:35 Jan 31, 2023 Jkt 039200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H422.IH H422 pbinns on DSKJLVW7X2PROD with $$_JOB 4 •HR 422 IH gestion Tax Act) paid or incurred during the taxable year 1 by such taxpayer for the use of any qualified vehicular 2 crossing immediately before entry into the congestion toll- 3 ing zone (as such term is defined in section 2(d) of the 4 Anti-Congestion Tax Act). 5 ‘‘(b) QUALIFIED VEHICULAR CROSSING.—For pur- 6 poses of this section, the term ‘qualified vehicular cross- 7 ing’ means any of the vehicular crossing known as the 8 Holland Tunnel, the Lincoln Tunnel, the George Wash- 9 ington Bridge, or any other vehicular crossing for the use 10 of crossing immediately before entry into the congestion 11 tolling zone. 12 ‘‘(c) NO DOUBLE BENEFIT.—The amount of any de- 13 duction or other credit allowable under this chapter for 14 a congestion toll for which a credit is allowable under sub- 15 section (a) shall be reduced by the amount of credit al- 16 lowed under such subsection.’’. 17 (b) CLERICAL AMENDMENT.—The table of sections 18 for such subpart B is amended by inserting after the item 19 relating to section 30D the following new item: 20 ‘‘Sec. 30E. Certain congestion tolls.’’. (c) EFFECTIVE DATE.—The amendments made by 21 this section shall apply to taxable years beginning after 22 the date of enactment of this Act. 23 Æ VerDate Sep 11 2014 06:35 Jan 31, 2023 Jkt 039200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6301 E:\BILLS\H422.IH H422 pbinns on DSKJLVW7X2PROD with $$_JOB

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