New Jersey would allow tax deductions for personal fuel costs

Taxpayers could subtract eligible fuel spending from their New Jersey taxable income. The yearly limit would be $10,000 per taxpayer for fuel used personally in vehicles they own or lease. Employer-reimbursed expenses would not qualify. Costs eligible for deductions tied to business earnings, rent and royalties, or medical care would not qualify, even if those deductions go unclaimed. Fuel paid for with tax-exempt medical savings account money would also be excluded. Taxpayers would need receipts or other proof of their fuel purchases. The bill would take effect upon enactment. The deduction would apply to tax years beginning on or after the following January 1.