Do New Jersey drivers who pay their tolls with E-ZPass receive tax deductions?

Possibly. That is, if a bill introduced earlier this year is passed.

Senators James W. Holzapfel (R-Monmouth and Ocean) and Patrick J. Diegnan, Jr. (D-Middlesex) sponsored bipartisan bill S520, which was introduced in the state Senate on January 9 and referred to the state Senate Budget and Appropriations Committee on January 11, where it has been under consideration since then.

If the bill passes the state Senate and House of Representatives and is subsequently signed into law by Governor Phil Murphy, New Jersey drivers who pay $1,000 in tolls during the tax year using E-ZPass will be able to deduct their tolls from their taxes.

The bill provides some cost relief for commuters.

“This bill is intended to help individuals offset the significant costs associated with commuting, which have been exacerbated by the recent increase in the state’s gasoline tax. By providing toll-paying commuters with an opportunity to offset some of their costs, this bill recognizes that these individuals pay more than their fair share of the burden of maintaining safe, modern, and sufficient roadways in the state,” the bill states.

This is not the first attempt at a bill affecting tax deductions for E-ZPass users. There have been several versions of this bill going back years.