New York Congressman’s Legislation Would Allow Tax Deductions on Utility Bills

Taxes | April 20, 2026

New York Congressman’s Legislation Would Allow Tax Deductions on Utility Bills

The No Taxes on Utility Bills Act, introduced by Rep. John Riley (D-NY), would allow U.S. taxpayers to deduct all taxes and state-mandated surcharges included on gas and electric bills.

By Paul Kir
Daily Freeman, Kingston, N.Y.
(TNS)

KINGSTON, N.Y. — U.S. Rep. Josh Riley has introduced legislation that, if enacted, would allow tax deduction on utility bills, his office announced on Friday.

Riley, D-Ithaca, who represents the 19th Congressional District, introduced a bill known as the “No Tax on Utility Bills Act.”

Riley’s office said it is “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,” Riley said in a statement. “It’s an emergency, and we need to treat it like one. 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.”

Riley’s office said upstate New York has some of the highest household energy prices in the nation, and costs have climbed even higher in recent years.

The office said 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, the release said.

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. It would apply to both residential and small business ratepayers. It would take effect for taxable years beginning after enactment, his office said.

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 release said.

The legislation would amend Section 164(a) of the Internal Revenue Code to include these costs as deductible expenses.

Central Hudson said any tax reduction would be welcomed.

“Central Hudson supports efforts that help make energy more affordable for the customers we serve,” the company said in a Friday statement when asked for comment. “Taxes and state‑mandated surcharges make up a meaningful portion of every utility bill, and these charges are set by government entities—not by utilities. Any proposal that reduces those costs for families and small businesses would provide welcome relief.”

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© 2026 Daily Freeman, Kingston, N.Y. Visit www.dailyfreeman.com. Distributed by Tribune Content Agency LLC.

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