WASHINGTON, D.C. — On April 17, Congressman Josh Riley (NY-19), alongside Congressman Jeff Van Drew (NJ-02), introduced the No Taxes on Utility Bills Act, bipartisan legislation to allow taxpayers to deduct taxes and state-mandated surcharges included on their gas and electric utility bills.

“Families across Upstate New York are struggling just to keep the lights and heat on. It’s an emergency, and we need to treat it like one,” said Riley. “That means cutting people a break, not piling on taxes and fees every time they open their utility bill. This is a step toward real relief.”

Upstate New York has some of the highest household energy prices in the nation, and costs have climbed even higher in recent years, according to Riley's office. But the base cost of energy is only part of what families see on their monthly bill. According to analysis by Heatmap News and MIT, taxes and state-mandated surcharges accounted for nearly $100 of a $250 Upstate utility bill. Under Riley’s plan, taxpayers would be able to deduct that full amount.

The No Taxes on Utility Bills Act would:

• Allow taxpayers to deduct all taxes and state-mandated surcharges included on gas and electric bills
• Apply to both residential and small business ratepayers
• Take effect for taxable years beginning after enactment

Current federal tax law allows deductions for certain categories of taxes but does not include taxes and state-mandated surcharges embedded in utility bills. The legislation would amend Section 164(a) of the Internal Revenue Code to include these costs as deductible expenses.