Summary

Stops certain federal capital grants to the Metropolitan Transportation Authority unless drivers entering a defined Manhattan congestion zone receive an offset equal to the toll they just paid at a nearby tunnel or bridge. Also creates a new nonrefundable federal tax credit for those congestion tolls for use of the specified crossings, effective for taxable years beginning after enactment.

Key Points

• Conditions federal capital grants to the MTA on certifying that drivers entering the Manhattan congestion zone receive a toll offset equal to the toll just paid at specified crossings.
• Requires the congestion toll to be credited or reduced by the amount of the immediately prior crossing toll for affected vehicles.
• Defines the congestion tolling zone as Manhattan south of and including 60th Street, excluding the FDR Drive.
• Creates a new nonrefundable federal tax credit for congestion tolls paid at specified crossings before entering the congestion zone.
• The tax credit cannot be double-counted with other deductions or credits for the same toll expense.
• Grant condition applies to grants awarded on or after the first day congestion tolls are charged; tax credit applies to taxable years beginning after enactment.
• Targets vehicles that enter Manhattan from key tunnels and bridges and links federal transit funding decisions to local tolling policy.
• May require administrative changes at the MTA, state/local authorities, and the Treasury/IRS to implement offsets and the new tax credit.

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