Kean, Gillen and Van Drew introduce bill to create tax deduction for commuting expenses
WASHINGTON, D.C. — U.S. Reps. Tom Kean Jr. of New Jersey, Laura Gillen of New York and Jefferson Van Drew of New Jersey introduced legislation Tuesday that would establish a federal income tax deduction for personal commuting expenses.
The Lowering Commuting Costs Act would establish a deduction of up to $340 a month for individuals and $680 a month for joint filers for commuting expenses, including gas, public transit and tolls such as New York City’s congestion pricing.
“Commuting costs strain hardworking New Jerseyans’ bottom lines,” said Congressman Kean. “The Lowering Commuting Costs Act would create a new deduction for taxpayers to save thousands of dollars of costs incurred when commuting, whether on train fare, on congestion pricing tolls, and more. I am proud to co-lead this bill to help families keep more of their hard-earned money and reduce the monetary strain of daily commutes.”
“Hardworking Long Islanders are forced to pay skyrocketing costs just to get to work, making the cost of living crisis even worse,” said Rep. Gillen. “With the rising price of gas, LIRR fares and the NYC congestion tax, working families are left with no affordable way to get to their jobs. This bipartisan bill will help families save money as they commute to work and contribute to the economy by creating the first-ever tax credit for personal commuting expenses.”
“For millions of Americans, just getting to work every day is expensive,” said Rep. Van Drew. “Gas is expensive, tolls are expensive, and for a lot of families, those costs add up to thousands of dollars a year. If businesses can deduct the cost of doing business, working people should be able to deduct what it takes to get to and from their jobs. I am proud to join Congresswoman Gillen on this bill and give some of that money back to the people who earn it.”
According to the bill text provided with the announcement, the proposed deduction would apply to unreimbursed travel between a taxpayer’s residence and place of employment or travel in the course of the taxpayer’s trade or business.
The deduction would be capped at $4,080 per year for individuals and twice that amount for joint returns. The limit would be adjusted for inflation for tax years beginning after 2026.
The bill also states that taxpayers could not claim another credit or deduction for an amount claimed under the commuting deduction. It calls for regulations or guidance establishing a safe harbor to limit the need for taxpayers to retain documentation for ordinary commuting expenses.
If enacted, the changes would apply to qualifying expenses paid or incurred after Dec. 31, 2026.
