What's happening
This bill creates a tax credit for New York employers who subsidize employees' public transportation costs, with specific eligibility criteria.
Why it matters
Encourages employers to help cover employees' transit costs. by directly linking tax credits to the percentage of public transportation expenses subsidized, potentially making commuting more affordable for workers outside the metropolitan commuter transportation district.
Offers greater incentives for full coverage. Employers who pay 100% of an employee’s transit costs receive a larger tax credit (25%) than those who only cover half (15%), which could motivate more generous employer programs and boost public transit ridership.
Limits eligibility to non-metropolitan areas and in-state providers. By excluding the metropolitan commuter transportation district (covering NYC and surrounding counties) and out-of-state transit, the bill specifically targets support to employers in smaller cities and rural New York, potentially addressing transportation inequities.
Requires a year-long commitment. Employers can only claim the credit for providing at least a one-year transit pass per employee, encouraging stable, long-term investment in employee transportation rather than short-term or piecemeal subsidies.
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Who cares
Headline styles
Subsidize Commuter Transit Costs
Plain English, a few words. Used as the page title.
Sponsors
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History
- Enacting clause stricken
- Referred to ways and means
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
7981
2017-2018 Regular Sessions
IN ASSEMBLY
May 23, 2017
Introduced by M. of A. SEPULVEDA -- read once and referred to the Committee on Ways and Means
AN ACT to amend the tax law, in relation to providing a tax credit to employers who subsidize an employee's use of public transportation
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Section 210-B of the tax law is amended by adding a new subdivision 53 to read as follows:
53. Employer transportation credit. (a) A taxpayer shall be allowed a credit, to be computed as hereinafter provided, against the tax imposed by this article. The amount of the credit shall be equal to either:
(i) fifteen percent of the expenses incurred during a taxable year in providing public transportation services for employees, provided that the taxpayer contribute at least fifty percent of an employee's total public transportation service cost.
(ii) twenty-five percent of the expenses incurred during a taxable year in providing public transportation services for employees, provided that the taxpayer contribute one hundred percent of an employee's total public transportation service cost.
(b) For the purposes of this subdivision, "public transportation service" shall have the same definition as in paragraph five of section seventy-three-c of the transportation law.
(c) A taxpayer may contribute to an employee's total transportation service cost in the following manners:
(i) by reimbursing an employee directly for the cost of the expenses incurred for services;
(ii) by providing passes for purchase directly to employees at a discounted rate; or
(iii) by allowing employees to incur a payroll deduction.
(d) Such pass must cover a minimum of one year per employee for the taxpayer to claim a credit under this section.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD10961-02-7
A. 7981 2
(e) No such credit shall:
(i) cover public transportation service providers located outside of the state of New York;
(ii) apply to public transportation networks within the metropolitan commuter transportation district; or
(iii) exceed the amount of tax otherwise due pursuant to this article for the taxable year.
§ 2. This act shall take effect immediately and shall apply to taxable years commencing on or after such effective date.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
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