H.R. 344 — Anti-Congestion Tax Act

This section prohibits the Secretary of Transportation from awarding capital investment grants under 49 U.S.C. §5338(d)—which fund new fixed guideway transit projects such as rail extensions and bus rapid transit—for projects in New York State to the Metropolitan Transportation Authority until the Secretary certifies that vehicles entering the congestion tolling zone (i.e., roadways, bridges, tunnels, approaches, or ramps in Manhattan south of and including 60th Street, excluding the Franklin D. Roosevelt Drive) via the Holland Tunnel, Lincoln Tunnel, George Washington Bridge, or any other immediate vehicular crossing receive a credit equal to the crossing toll against the congestion toll charged for zone entry. For the George Washington Bridge, vehicles must be treated the same as those crossing the Henry Hudson Bridge on the first day the congestion toll is charged. The prohibition applies to grants awarded on or after the first date the congestion toll is charged.

This section establishes a new tax credit under section 30E of the Internal Revenue Code equal to congestion tolls (as defined in sec. 2(d) of the Anti-Congestion Tax Act) paid or incurred by a taxpayer during the taxable year for use of a qualified vehicular crossing—specifically, the Holland Tunnel, Lincoln Tunnel, George Washington Bridge, or any other vehicular crossing—immediately before entry into the congestion tolling zone (as defined in that Act). The credit denies any double benefit by reducing otherwise allowable deductions or credits by the credit amount and applies to taxable years beginning after enactment.