What's happening
This bill allows New York taxpayers to exclude certain qualified transportation fringe benefits from state taxable income, reflecting prior federal tax treatment.
Why it matters
Restores state tax exclusions for transportation benefits. By aligning New York tax law with pre-2018 federal rules, the bill lets employees exclude certain commuter benefits (like transit passes and parking) from their state taxable income, reversing a change made by federal tax reform.
Protects commuter savings and incentives. This change matters especially for urban and suburban workers who rely on public transportation or employer-provided parking, helping them save money and encouraging continued use of mass transit options.
Establishes a floor for benefit amounts. The bill sets a minimum exclusion amount ($175/month) for qualified transportation benefits, ensuring that even if federal limits drop, New Yorkers can still exclude a substantial amount from state taxes.
Provides tax stability amid changing federal rules. By referencing specific federal tax code language as it existed at the end of 2018, the bill insulates New York taxpayers from potential future federal reductions or changes to transportation benefit exclusions.
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Who cares
Headline styles
Exclude Transit Benefits from Taxes
Plain English, a few words. Used as the page title.
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History
- Referred to ways and means
- Referred to ways and means
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Tax Break for Transit Benefits
In Senate Committee · Budget And Revenue · Sponsor David Carlucci
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
3544
2019-2020 Regular Sessions
IN ASSEMBLY
January 29, 2019
Introduced by M. of A. ZEBROWSKI -- read once and referred to the Committee on Ways and Means
AN ACT to amend the tax law, in relation to qualified transportation fringe benefits
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Subsection (c) of section 612 of the tax law is amended by adding a new paragraph 44 to read as follows:
(44) For taxable years beginning after December thirty-first, two thousand eighteen the amount of qualified transportation fringe benefits included in federal adjusted gross income, to the extent that such qualified transportation fringe benefits would have been excluded from gross income pursuant to paragraph five of subsection (a) of section one hundred thirty-two of the internal revenue code had the flush sentence of paragraph two of subsection (f) of section one hundred thirty-two of the internal revenue code that was in effect on December thirty-first, two thousand eighteen continued in effect after December thirty-first, two thousand eighteen; provided, however, that if subparagraph (A) of paragraph two of subsection (f) of section one hundred thirty-two of the internal revenue code is amended so that for any month the dollar amount in effect under such subparagraph (A) is greater than the dollar amount in effect under subparagraph (B) of paragraph two of subsection (f) of section one hundred thirty-two of the internal revenue code for the same month, the flush sentence of paragraph two that was in effect on December thirty-first, two thousand eighteen shall be deemed to provide that the dollar amount in effect for subparagraph (B) shall be applied as if the dollar amount therein were the same as the dollar amount in effect for such month under subparagraph (A). Notwithstanding the foregoing, if, pursuant to this paragraph, the amount that would be in effect for any month under subparagraph (A) or (B) of paragraph two of subsection (f) of section one hundred thirty-two of the internal revenue code is
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD06298-01-9
A. 3544 2
less than one hundred seventy-five dollars, subparagraphs (A) and (B) shall be applied as if the dollar amount in effect for such month under such subparagraphs was one hundred seventy-five dollars.
§ 2. This act shall take effect immediately.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.