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Bill

S 10537

Exempts certain residents of the central business district from central business district tolls

2025 Regular Session Introduced by Brian Kavanagh

The bill lets eligible CBD residents get a TBTA CBD toll exemption tied to a CPI-adjusted income threshold and CBD toll credit, with certification to prevent business-expense misus

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Bill Summary · S 10537

Purpose and intent

  • The bill aims to exempt certain residents of New York City’s central business district (CBD) from central business district tolls imposed by the Triborough Bridge and Tunnel Authority (TBTA).
  • The exemption targets CBD residents who are eligible for the CBD toll credit established under the state tax code (Tax Law §606(jjj)).
  • In addition, the bill directs TBTA to set up certification procedures so residents can prove eligibility for the toll exemption, including safeguards to exclude tolls that would be considered a trade or business expense under the Internal Revenue Code.

Key provisions

  • Section 1 (Vehicle and Traffic Law): Amends §1704-a(3) by adding new paragraph (c)

    • The TBTA must implement a CBD toll exemption for residents whose primary residence is in the CBD and who are eligible for the CBD toll credit under Tax Law §606(jjj).
    • TBTA must establish certification procedures for residents to demonstrate eligibility.
    • Procedures must exclude from the exemption any tolls that would be treated as a trade or business expense under IRS Code §162 (i.e., ordinary and necessary business travel costs).

  • Section 2 (Tax Law): Amends Tax Law §606(jjj)(1)

    • For tax years beginning on or after January 1, 2021, and with adjustments for post-2027 CPI changes, a resident with primary CBD residence and New York adjusted gross income (NYAGI) below a threshold is eligible for a CBD toll credit.
    • The eligibility threshold is $60,000 NYAGI for the 2021 baseline year, adjusted annually by the CPI change for the NYC metropolitan area since 2021.
    • The credit amount is calculated according to the formula in paragraph 2 of §606(jjj) (the bill references the existing computation method in the statute).

  • Section 3 (Effective Date)

    • The act takes effect 180 days after becoming law.
    • The act authorizes immediate rulemaking necessary to implement its provisions, with such rulemaking able to occur before the effective date if needed.

Who would be affected

  • Primary CBD residents who:
    • Live in the CBD area established under VTL Article 44-C, and
    • Have NY AGI below the statutory threshold (starting at $60,000, subject to CPI updates).
  • These residents would be eligible for a CBD toll credit via the tax system and, if eligible, would receive a TBTA toll exemption for CBD tolls, subject to certification processes.
  • Businesses incurring CBD tolls as trade or business expenses would be affected indirectly by the exemption since certain tolls must be excluded if they would be treated as a business expense under IRS rules.

Procedural and timeline aspects

  • Introduced May 19, 2026; referred to the Senate Transportation Committee.
  • Effective date: 180 days after enactment.
  • Immediate authority for TBTA and state agencies to enact necessary regulations prior to the effective date to implement the exemption.

Potential impact and considerations

  • Financial: Reduces or eliminates CBD tolls for eligible CBD residents, provided they qualify for the CBD toll credit and comply with certification requirements.
  • Administrative: Requires TBTA to establish residency verification procedures and coordination with the tax credit program to determine eligibility and prevent double-dipping where tolls could be considered business expenses.
  • Equity: Targets lower- to middle-income CBD residents by tying eligibility to the CPI-adjusted income threshold, potentially expanding tax credit eligibility over time with CPI changes.
  • Fiscal: The bill could impact TBTA toll revenue and state tax collections/credits, with costs depending on the number of eligible residents and the credit amount.

Compiled from official sources — confirm details with the bill’s official record.

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