NJ Public Transit Riders Can Get A $1K Tax Credit: Authorities

Do you use public transportation? Save your receipts, NJ Transit and PATH riders… it can net you up to $1,000 per year on your taxes.

A provision in a recent federal spending and tax package, approved by the U.S. Congress and signed into law last week, will allow public transit users to write off a portion of their transportation bills on their federal taxes.

In New Jersey, the savings could amount to a good hunk of change, local lawmakers say.

“Beginning Jan. 1, those who rely on public transportation can set aside up to $255 per month in pre-tax earnings to pay their commuting expenses, amounting to an estimated annual savings of over $1,000 for [NJ Transit] riders who recently were forced to absorb a 9% fare hike,” a statement from U.S. Senator Robert Menendez claimed.

• See related article: 9 Percent Fare Hikes For NJ Transit Rail, Bus Users In New Jersey

With the monthly maximum transit benefit increased to $255 in 2016, it will cover 100 percent of a $210 monthly rail pass between Montclair and New York Penn Station, a $254 monthly pass from Metropark to Princeton or a $181 monthly bus pass between Glassboro and Philadelphia, according to Menendez’s office.

This year, motorists were able to set aside up to $250 monthly in pre-tax earnings to cover their commuting expenses, compared to just $130 a month for bus, train and ferry riders, according to Menendez’s office.

Menendez, U.S. Senator Cory Booker and U.S. Congressman Donald Payne, Jr. (NJ-10) announced the new tax credit rate on Monday at New Jersey Transit’s Walnut Station in Montclair.

“Incentivizing mass transit is the right thing to do, especially in such a densely populated state like New Jersey” Menendez said. “It gets people out of their cars and off our roads. It reduces traffic congestion and air pollution, and it improves the overall quality of life for residents.”

“As transit users are forced to bear the brunt of fare hikes, this transit tax credit could put more than $1,000 back in commuters’ pockets annually while finally providing some much-needed parity with those who drive to work,” Booker said.

“Mass transit is a lifeline for so many people in my district who depend on it every single day to go about their lives,” Payne, Jr. said. “Expanding and making permanent the transit tax break is a huge victory for commuters in our state. They deserve, and can now rightfully benefit from, the same tax break as people who drive. By making transit and parking benefits equal, we will not only encourage more commuters to take public transportation, we will no longer penalize people for choosing mass transit over driving.”

Photo Caption: U.S. Senators Bob Menendez and Cory Booker, along with U.S. Congressman Donald Payne, Jr., speak at New Jersey Transit’s Walnut Station in Montclair to urge transit commuters to take advantage of new federal tax benefits to help pay the cost of rising bus and train fares.