New Jersey 2024-2025 Regular Session

New Jersey Assembly Bill A5476 Compare Versions

Only one version of the bill is available at this time.

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1	1	ASSEMBLY, No. 5476 STATE OF NEW JERSEY 221st LEGISLATURE INTRODUCED MARCH 20, 2025
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3	3	ASSEMBLY, No. 5476
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5	5	STATE OF NEW JERSEY
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7	7	221st LEGISLATURE
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11	11	INTRODUCED MARCH 20, 2025
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15	15	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 As introduced.
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19	19	Sponsored by:
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21	21	Assemblyman GERRY SCHARFENBERGER
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23	23	District 13 (Monmouth)
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25	25	Assemblywoman VICTORIA A. FLYNN
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27	27	District 13 (Monmouth)
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37	37	SYNOPSIS
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39	39	Provides $5,000 gross income tax deduction for taxpayers who incur certain commuter expenses.
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43	43	CURRENT VERSION OF TEXT
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45	45	As introduced.
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49	49	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.
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51	51	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.
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55	55	Be It Enacted by the Senate and General Assembly of the State of New Jersey:
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59	59	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.
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61	61	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:
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63	63	(1) paid as a fine, penalty, or other payment made for a violation of a toll;
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65	65	(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;
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67	67	(3) reimbursed to the individual by or for the individual's employer;
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69	69	(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;
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71	71	(5) deductible in determining net profits from business pursuant to subsection b. of N.J.S.54A:5-1, even if not so deducted;
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73	73	(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
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75	75	(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.
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79	79	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.
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85	85	STATEMENT
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89	89	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.
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91	91	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.