E-Z Pass tax credit proposed to reduce impact of I-80 toll

A member of the legislature has proposed a tax credit for Pennsylvanians to ease the impact of potential tolling of Interstate 80 for in-state drivers.

The proposal is aimed at lessening the financial impact that tolling I-80 will have on state residents by providing drivers who use the E-Z Pass electronic tolling system with a tax credit of up to $500. It would allow drivers to subtract the cost of E-Z Pass tolls from gross income when filing a Pennsylvania tax return. Small businesses will also be able to claim the tax credit per E-Z pass account.

Transformation of I-80 into a toll road will not proceed until the federal government receives answers to questions in a letter sent to two state agencies last week. There is no time table set for the state to respond to the federal government.

The Pennsylvania Department of Transportation claims that 75 percent of drivers using I-80 are from out of state. The prospective bill would provide no tax relief for those drivers.

PennDOT and the Pennsylvania Turnpike Commission have entered into a 50-year lease under which the Turnpike Commission will toll I-80 as early as 2010 if required federal approvals are granted.

State Rep. Scott Conklin, D-Centre, is proposing the legislation, which is not yet in committee but already has more than 20 co-sponsors.

“We need to provide some relief for those Pennsylvanians who use I-80 every day and would be facing a substantial financial burden,” Conklin said. “If the majority of those driving on I-80 are from out of state, which was a reason given by proponents for tolling I-80 in particular, then we should have a policy in place that allows in-state motorists who use E-Z Pass to recoup some of the money they are losing from this plan.”

E-Z pass is a tolling system utilizing radio frequencies to electronically deduct fees from a prepaid account. The E-Z pass system will ease the tracking of actual cost to state commuters.

Among the co-sponsors is state Rep. John Yudichak, D-Nanticoke, who called it “a good step” and “a responsible thing to do.”

Yudichak said the $500 tax credit for I-80 corridor users is an important step toward reducing expenses drivers will incur due to potential future tolling.

“We need to make sure that we provide them (in-state commuters) with some relief as we address one of the most difficult issues that we are facing not only in Pennsylvania but across the country, the reconstruction of our infrastructure,” Yudichak said. “I believe the bill that would provide the $500 tax deduction can go a long way towards minimizing the impact on Pennsylvania residents.”

Yudichak said the funding that will be generated by tolling I-80 is needed in Luzerne County – specifically to repair several dozen deficient bridges.

William Thomas, House Democratic Communications Office media specialist, said the proposal will not be voted on until after the legislature returns to session on Jan. 18.

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