Anti-Congestion Tax Act

Notwithstanding any other provision of law, the Secretary of Transportation may not award a capital investment grant described in section 5338(d) of title 49, United States Code, to the Metropolitan Transportation Authority for a project in New York State until the Secretary certifies that any vehicle entering the congestion tolling zone using a vehicular crossing known as the Holland Tunnel, the Lincoln Tunnel, or the George Washington Bridge, or any other vehicular crossing for the use of crossing immediately before entry into the congestion tolling zone, receives an exemption as follows: The vehicle is credited an amount equal to the toll charged to such vehicle for the use of such crossing immediately before entry into the congestion tolling zone from the amount of the congestion toll charged to such vehicle for purposes of entering the congestion tolling zone.

For purposes of subsection (a), a vehicle receives an exemption while crossing the George Washington Bridge if such vehicle is treated in the same manner as a vehicle crossing the Henry Hudson Bridge is treated on the first date on which the congestion toll is charged.

Subsection (a) shall apply with respect to a grant awarded on or after the first date on which the congestion toll is charged.

In this section, the following definitions apply:

The term congestion toll means a toll charged for entry into or remaining in the congestion tolling zone.

The term congestion tolling zone means any roadways, bridges, tunnels, approaches, or ramps that are located within, or enter to, the geographic area in the borough of Manhattan south of and inclusive of Sixtieth Street to the extent practicable, but does not include the Franklin D. Roosevelt Drive.

Subpart B of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by adding after section 30D the following new section:

There shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to the sum of any congestion toll (as such term is defined in section 2(d) of the Anti-Congestion Tax Act) paid or incurred during the taxable year by such taxpayer for the use of any qualified vehicular crossing immediately before entry into the congestion tolling zone (as such term is defined in section 2(d) of the Anti-Congestion Tax Act).

For purposes of this section, the term qualified vehicular crossing means any of the vehicular crossing known as the Holland Tunnel, the Lincoln Tunnel, the George Washington Bridge, or any other vehicular crossing for the use of crossing immediately before entry into the congestion tolling zone.

The amount of any deduction or other credit allowable under this chapter for a congestion toll for which a credit is allowable under subsection (a) shall be reduced by the amount of credit allowed under such subsection.

The table of sections for such subpart B is amended by inserting after the item relating to section 30D the following new item:

The amendments made by this section shall apply to taxable years beginning after the date of enactment of this Act.