TRENTON -- Gov. Chris Christie and Senate and Assembly leaders on Friday announced a deal to end a months-long impasse over transportation funding and raise the gasoline tax 23 cents a gallon.

The agreement was months in the making, with shifting alliances and failed negotiations. But at an afternoon news conference Friday, they said a deal came together about an hour earlier, ending a construction freeze that put crews out of work and had municipal leaders threatening to sue the state.

Here are seven things to know about that deal:

1. You'll pay more at the pump -- and soon

The deal includes a 23-cent increase in the gasoline tax that will raise the state's 14.5-cent-per-gallon tax -- the second-lowest in the U.S. -- to 37.5 cents -- the seventh-highest.

The new revenue will finance an eight-year, $16 billion transportation program. With federal funds included, the total funding is $32 billion. Christie said this will be the longest and largest reauthorization in the trust fund's history.

The municipal share of that money will double from $200 million a year to $400 million.

The tax hike will go into effect soon. Both legislative houses will be called into a special committee hearing and voting session Wednesday morning. Christie said he's already consulted with Republican leaders in the Assembly and Assembly Speaker Vincent Prieto (D-Hudson) said he's confident the bill will pass. The increase will take effect after Christie signs the bill.

2. It really was a compromise

Despite the controversial nature of the gas tax hike, Christie and the Democratic-controlled Senate actually clashed over the nature of the corresponding tax cuts.

Christie demanded a broad-based tax cut plan that Sweeney said the state couldn't afford, while Christie said Sweeney's more targeted tax cuts didn't go far enough.

The agreement they announced Friday samples from both proposals and, according to the governor's office, will cost $1.4 billion a year once fully implemented in 2021.

3. Taxing the transfer of big estates will end

One of the costlier tax cuts is the elimination of the estate tax.

About 4 percent of estates each year are subject to the estate tax, a tax on the transfer of estates over $675,000. The $675,000 threshold would increase to $2 million on Jan. 1, and then the tax would be eliminated altogether after Jan. 1, 2018.

New Jersey levied estate taxes on 3,467 estates in 2014, according to data from the state's nonpartisan Office of Legislative Services. The richest 94 estates paid an average of $1.2 million, while those valued from $675,000 to $1 million paid an average of $21,000.

4. You'll soon pay a little less sales tax

While Christie wanted a 1 percentage point reduction in the sales tax, from 7 percent to 6 percent, the rollback in the final plan is a small, 0.375 percent. It will decrease from 7 percent to 6.875 percent on Jan. 1, and then from 6.875 percent to 6.625 percent on Jan. 1, 2018.

5. The working poor get a bigger tax credit

The Earned Income Tax Credit for low-income workers will rise from 30 percent of the federal level to 35 percent.

Last year, Christie and the Legislature raised the limit, which is directly tied to the federal limit, from 20 percent to 30 percent, or more than $200 a year for the average family. That expansion was expected to benefit about a half million New Jerseyans, three quarters of whom earn less than $20,000 a year.

Essex, Middlesex and Camden counties have the the largest concentration of recipients, according to New Jersey Policy Perspective. Even wealthy counties have more than 10,000 recipients.

Eligibility depends on income and number of qualifying children. The income limit is about $14,800 for a single, childless adult, and $53,000 for a married couple with three or more children.

6. A tax break on retirement income

The only tax cut to appear in both the Senate's and governor's competing proposals -- to retirement income taxes -- is also part of the final compromise.

The state taxes retirement income over $20,000 for couples filing jointly, $15,000 for individuals and $10,000 for those who are married but file separately. Under the proposal, more of that income would be exempt from taxes.

Income under $100,000 would be tax free for couples filing jointly, under $75,000 for single filers and under $50,000 for married filing separately after a five-year phase in.

7. Tax exemption for veterans

Veterans who were honorably discharged from active service in the military or National Guard will be eligible for an income tax exemption.

Samantha Marcus may be reached at smarcus@njadvancemedia.com. Follow her on Twitter @samanthamarcus. Find NJ.com Politics on Facebook.