Congressman Jeff Van Drew (R-NJ) and Congressman Josh Riley (D-NY) introduced H.R. 8350, the No Taxes on Utility Bills Act, according to an April 20 announcement. The bill would let taxpayers deduct all taxes and state-mandated surcharges listed on their gas and electric bills from their federal taxable income.
The proposed legislation aims to provide financial relief for families facing higher utility costs due in part to additional taxes and fees. Van Drew said many people are frustrated by increasing charges on their monthly bills that go beyond actual energy use.
“People are fed up with opening their utility bills and seeing line after line of extra charges that keep pushing the cost higher,” Van Drew said. “They are paying more and more every month, and a big part of that is taxes and state-mandated charges that have nothing to do with how much energy they use. This bill would let taxpayers write off those extra charges to effectively lower their taxable income and keep more of their hard-earned dollars. While this is a state issue, both in terms of what is driving these high bills and what needs to be done to bring them down, I am going to keep doing everything I can at the federal level to help lower these costs. This bill is a simple, common-sense way to give these families some relief.”
The new measure builds upon previous efforts by Van Drew and Riley, including the No Bonuses for Utility Executives Act, which targets executive bonuses when rates increase.
Van Drew further commented: “The people of New Jersey are struggling to keep up, and then they see executives getting bonuses while their bills go up. That is backwards. If you are raising rates faster than inflation, you should not be receiving bonuses. Maybe then they will reconsider their insane rate increases.”
