What's happening
This bill creates a tax credit for New York employers who subsidize at least half the cost of employees' public transportation.
Why it matters
Encourages employers to support public transit. By offering a significant tax incentive, the bill aims to make it more financially attractive for employers to help pay for their employees’ public transportation, potentially shifting more commuters away from driving.
Tiered benefit structure promotes higher subsidies. Employers get a larger credit (25%) for covering the full cost of transit, compared to 15% for covering at least half—creating a strong incentive for businesses to be more generous in their transportation benefits.
Limits and caps prioritize in-state impact and fairness. The tax credit only applies to New York-based transit expenses, and there’s an annual statewide cap of $50 million, ensuring the benefit supports local transit systems and is distributed fairly across employers.
May improve workforce retention and access. By reducing commuting costs, the bill could help employers attract and retain employees, particularly those for whom transportation costs are a significant barrier to employment.
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Who cares
Headline styles
Give Tax Breaks for Transit
Plain English, a few words. Used as the page title.
Sponsors
1 Co-sponsor
History
- Referred to budget and revenue
- Reported and committed to finance
- Referred to budget and revenue
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
2712
2019-2020 Regular Sessions
IN SENATE
January 29, 2019
Introduced by Sens. KENNEDY, SEPULVEDA -- read twice and ordered printed, and when printed to be committed to the Committee on Budget and Revenue
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 subdivision 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.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD03956-01-9
S. 2712 2
(d) Such pass must cover a minimum of one year per employee for the taxpayer to claim a credit under this section.
(e) No such credit shall:
(i) cover public transportation service providers located outside of the state of New York; or
(ii) exceed the amount of tax otherwise due pursuant to this article for the taxable year.
(f) The aggregate amount of tax credits allowed under this subdivision in any calendar year statewide shall be fifty million dollars.
(g) The commissioner shall prioritize employers who subsidize the full cost of employee transit over the fifty percent subsidy.
§ 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.
Sponsor's memo
Title of bill
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
Summary of provisions
Section one amends the section 210-B of the tax law by adding new subdi- vision 52 to establish a tax credit for the cost incurred by employers who subsidize the cost of public transportation for employees.
Section two established the effective date.
Justification
In the past decade the ridership of public transportation systems in New York State has drastically decreased. Currently regions outside of New York City do not have a robust enough financial infrastructure to support their transportation needs.
Many of these networks are operating at a deficit and are then forced to cut routes, decrease employee pay, and otherwise reduce the quality of service. The divestment from public transportation systems often hits the most economically disadvantaged the hardest. Effective and efficient public transportation helps the entire community, from the jobs it provides to creating accessibility to neighborhoods that are often forgotten.
In order to acquire more funding, increasing ridership is vital. People must be encouraged to utilize the existing systems in order for services to improve and expand. These two tax credits would incentivize employers to subsidize the cost of public transportation for its employees, not only promoting the use of public transportation but motivating employees to practice a more environmentally friendly commute
Legislative history
2017-18: S.5971A Referred to Investigations and Government Operations
Fiscal implications
$50 million
Effective date
This act shall take effect immediately
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.