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Hudson County Assemblyman Ruben Ramos on Monday introduced a new bill that would provide a temporary gross income tax credit for eight percent of the amount a resident spends on commuting via mass transit.

Under the legislation, dubbed the New Jersey Commuter Pass Credit Act, individuals would receive the eight percent tax credit based on money spent on “qualified commuting passes” — passes for train, bus or ferry service purchased at a price of no less than $30. The tax credit would be capped at $100 per person per year; that is eight percent of a yearly commuting cost of $1250, or $104.17 per month. To be considered eligible commuting, one of the terminals must be in New Jersey.

The proposal comes six months after NJ Transit approved fare hikes of 10 percent for bus and light rail routes, and 25 percent for rail and commuter bus lines, along with service cuts. Ramos says he hopes it will help alleviate some of the financial strain those hikes have brought, as well as generally promote mass transit use.

“This bill is designed to provide some measure of financial relief to New Jersey taxpayers who rely on train, bus or ferry to get to work,” he says. “We also hope this will alleviate congestion and provide incentives for us to reduce our carbon footprint.”

The pilot program, designed to last three years, would require state tax officials to complete a report near the end of its run to help determine if the incentive should be renewed or allowed to expire.

“This is a logical, short-term, three-year stimulus measure designed to help those that are struggling to stay afloat and allow us to see just how effective this policy will be in the long-run,” Ramos says. “Hopefully this measure will help ease a little bit of the strain on the average commuter.”

The bill is currently awaiting a hearing from the Assembly Transportation, Public Works and Independent Authorities Committee.