Anti-Congestion Tax Act

Bill Number

H.R. 344

Origin Chamber

House

Congress

119th Congress, Session 1

Policy Area

Transportation and Public Works

Status

Introduced

Latest Action

2025-01-14: Referred to the Subcommittee on Highways and Transit.

Last Updated

2025-03-12T08:06:39Z

AI-Generated Summary

Purpose of the Legislation

The "Anti-Congestion Tax Act" (H.R. 344) aims to provide relief to drivers entering New York City's proposed congestion tolling zone by requiring exemptions from congestion fees for those using specific bridges and tunnels, and offering a federal tax credit for related tolls. It conditions federal transportation grants to the Metropolitan Transportation Authority (MTA) on implementing these exemptions.

Key Provisions

• Short Title: The bill is titled the "Anti-Congestion Tax Act."
• Condition on Federal Grants (Section 2):
• The U.S. Secretary of Transportation cannot award capital investment grants (under 49 U.S.C. § 5338(d)) to the MTA for projects in New York State unless the Secretary certifies that vehicles entering the congestion tolling zone via the Holland Tunnel, Lincoln Tunnel, George Washington Bridge, or other immediate pre-entry crossings receive an exemption.
• The exemption credits the amount of the pre-entry toll (e.g., for using the bridge or tunnel) against the congestion toll charged for entering the zone, effectively reducing or eliminating the net cost.
• For the George Washington Bridge, vehicles must be treated the same as those using the Henry Hudson Bridge on the first day congestion tolls are charged.
• This condition applies to grants awarded on or after the first day congestion tolls are imposed.
• Definitions:
• Congestion toll: A fee charged for entering or remaining in the congestion tolling zone.
• Congestion tolling zone: Roadways, bridges, tunnels, approaches, or ramps in Manhattan south of and including 60th Street (to the extent feasible), excluding the Franklin D. Roosevelt Drive.
• Tax Credit for Congestion Tolls (Section 3):
• Adds a new section (30E) to the Internal Revenue Code (1986), allowing taxpayers a non-refundable credit against their federal income tax for congestion tolls paid for using qualified vehicular crossings (Holland Tunnel, Lincoln Tunnel, George Washington Bridge, or other immediate pre-entry crossings) during the tax year.
• The credit equals the amount of the congestion toll paid for the pre-entry crossing.
• Prevents "double benefits" by reducing any other tax deductions or credits for the same toll by the credit amount.
• Applies to tax years beginning after the date of enactment.

Significant Changes to Existing Law

• Introduces a new condition on federal capital investment grants to the MTA, linking funding to state/local toll policies—previously, such grants under 49 U.S.C. § 5338(d) had no such toll-related restrictions.
• Creates a new tax credit (IRC § 30E) in the section for other credits (after § 30D, which covers clean vehicle credits), expanding federal tax relief to include specific urban tolls; no prior credit existed for these congestion-related fees.

Potential Impacts

• Government Agencies: The Department of Transportation (DOT) must certify compliance before awarding MTA grants, potentially delaying or withholding federal funding (e.g., for transit projects) if exemptions are not implemented. The Internal Revenue Service (IRS) will administer the new tax credit, increasing workload for processing claims.
• Citizens: Drivers (especially commuters from New Jersey via the specified crossings) benefit from toll credits and a federal tax break, reducing the financial burden of New York City's congestion pricing program. This could encourage more vehicle use into Manhattan but may not affect residents or non-drivers.
• International Relations: No direct impacts, as the bill focuses on domestic transportation and taxation.

Main Stakeholders Affected

• Metropolitan Transportation Authority (MTA): Primary recipient of conditional grants; must adjust toll policies to secure federal funding.
• Drivers and Commuters: Particularly those using the Holland Tunnel, Lincoln Tunnel, George Washington Bridge, or similar crossings into Manhattan's congestion zone, who gain exemptions and tax relief.
• Federal Government: DOT (grant oversight), IRS (tax credit administration), and Congress (funding allocations).
• New York State and City Officials: Indirectly affected through MTA operations and the congestion pricing program's viability.
• Taxpayers: Broader group, as the tax credit reduces federal revenue, potentially shifting costs to the general public.

Notable Legal, Constitutional, or Political Implications

• Legal: Establishes enforceable certification requirements for grants, which could lead to disputes over DOT's interpretation of "exemption" or toll calculations; integrates tax policy with transportation funding in a novel way.
• Constitutional: Relies on Congress's spending power to condition federal grants on state/local actions (a common practice, as in cases like South Dakota v. Dole, 1987), but may raise federalism concerns if seen as overly prescriptive on local tolling authority.
• Political: Targets New York City's congestion pricing initiative (authorized under prior federal law), potentially benefiting out-of-state commuters (e.g., from New Jersey, as sponsors are from there) while pressuring the MTA; could influence urban traffic management debates without altering the core congestion program.

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Sponsor

Rep. Gottheimer, Josh [D-NJ-5]

Cosponsors (2)

Rep. Van Drew, Jefferson [R-NJ-2], Rep. Fitzpatrick, Brian K. [R-PA-1]

Recent Actions

• 2025-01-14: Referred to the Subcommittee on Highways and Transit.
• 2025-01-13: Referred to the Committee on Ways and Means, and in addition to the Committee on Transportation and Infrastructure, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
• 2025-01-13: Referred to the Committee on Ways and Means, and in addition to the Committee on Transportation and Infrastructure, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
• 2025-01-13: Introduced in House
• 2025-01-13: Introduced in House

Bill Versions

• Anti-Congestion Tax Act — issued 2025-01-13 — PDF (4 pages)