New Jersey casinos and gaming companies are fighting a federal tax bill that could increase gambling losses for the state.
A proposed measure would allow casino owners to deduct up to $50,000 of their casino losses from their taxable income.
It’s expected to be included in a final tax bill this week.
Lawmakers in New Jersey’s capital New York City voted to override Gov.
Andrew Cuomo’s veto in March, and he has since signed the measure into law.
But that was only the beginning.
Cuomo signed a measure that would have allowed casinos to deduct the full $50 million in losses.
It also included a provision allowing them to deduct losses from gaming revenue.
A bill signed by New York Gov.
Bill de Blasio, D-N.Y., in March would have eliminated the deduction.
The legislation has been under attack from Republican lawmakers who say the bill is an overreach that will force casinos to lose money.
Cuomo says the law will save the state millions of dollars in gambling taxes and revenue.
The casino tax bill passed the state House and Senate in the days leading up to the veto override, and Cuomo signed the bill into law in May.
The measure now goes to Gov.
Chris Christie, D, who has yet to weigh in on the bill.
In February, the Trump administration sent a letter to New Jersey, saying it was considering a request to delay the tax deduction.
It would be up to Christie to decide if he wants to sign the bill, a spokesman for the governor said at the time.