NY State Senate Bill 2017-S5971A

Senate Bill S5971A

2017-2018 Legislative Session

Relates to providing a tax credit to employers who subsidize an employee's use of public transportation

download bill text pdf

Archive: Last Bill Status - In Senate Committee Investigations And Government Operations Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 03, 2018	referred to investigations and government operations
May 22, 2017	print number 5971a
May 22, 2017	amend and recommit to investigations and government operations
May 09, 2017	referred to investigations and government operations

Bill Amendments

Original

A (Active)

co-Sponsors

2017-S5971 - Details

Current Committee:: Senate Investigations And Government Operations
Law Section:: Tax Law
Laws Affected:: Amd §210-B, Tax L
Versions Introduced in 2019-2020 Legislative Session:: S2712

2017-S5971 - Summary

Relates to providing a tax credit to employers who subsidize an employee's use of public transportation.

2017-S5971 - Sponsor Memo

                                 BILL NUMBER:  S5971               REVISED MEMO 05/15/2017

 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

 PURPOSE :

To provide a tax credit to employers who subsidize a portion or the
entirety of an employee's use of public transportation.

 SUMMARY OF PROVISIONS :

Section one amends the section 210-B of the tax law by adding new
subdivision 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.

 EXISTING LAW :

New law

 JUSTIFICATION :

In the past decade the ridership of public transportation systems in
New York State, excluding the New York City area, 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 :

New bill

 FISCAL IMPLICATIONS :

TBD

 EFFECTIVE DATE :
This act shall take effect immediately

2017-S5971 - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5971
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                                May 9, 2017
                                ___________
 
 Introduced  by  Sen. KENNEDY -- read twice and ordered printed, and when
   printed to be committed to the Committee on Investigations and Govern-
   ment Operations
 
 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 ASSEM-
 BLY, 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.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD10961-02-7

 S. 5971                             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;
   (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.

co-Sponsors

2017-S5971A (ACTIVE) - Details

Current Committee:: Senate Investigations And Government Operations
Law Section:: Tax Law
Laws Affected:: Amd §210-B, Tax L
Versions Introduced in 2019-2020 Legislative Session:: S2712

2017-S5971A (ACTIVE) - Summary

Relates to providing a tax credit to employers who subsidize an employee's use of public transportation.

2017-S5971A (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S5971A

 PURPOSE :

To provide a tax credit to employers who subsidize a portion or the
entirety of an employee's use of public transportation.

 SUMMARY OF PROVISIONS :

Section one amends the section 210-B of the tax law by adding new
subdivision 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.

 EXISTING LAW :

New law

 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 :

New bill

 FISCAL IMPLICATIONS :

$50 million

 EFFECTIVE DATE :
This act shall take effect immediately

2017-S5971A (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  5971--A
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                                May 9, 2017
                                ___________
 
 Introduced by Sens. KENNEDY, HAMILTON, LATIMER -- read twice and ordered
   printed, and when printed to be committed to the Committee on Investi-
   gations  and  Government  Operations  --  committee  discharged,  bill
   amended, ordered reprinted as amended and recommitted to said  commit-
   tee

 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  ASSEM-
 BLY, 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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD10961-03-7

 S. 5971--A                          2
 
   (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.
   (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.

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Senate Bill S5971A

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Sponsored By

Timothy M. Kennedy

Archive: Last Bill Status - In Senate Committee Investigations And Government Operations Committee

Bill Amendments

co-Sponsors

Jesse Hamilton

George Latimer

2017-S5971 - Details

2017-S5971 - Summary

2017-S5971 - Sponsor Memo

2017-S5971 - Bill Text download pdf

co-Sponsors

Jesse Hamilton

Luis R. Sepúlveda

2017-S5971A (ACTIVE) - Details

2017-S5971A (ACTIVE) - Summary

2017-S5971A (ACTIVE) - Sponsor Memo

2017-S5971A (ACTIVE) - Bill Text download pdf

Comments