Senate Bill S2712

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   2712
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                             January 29, 2019
                                ___________
 
 Introduced  by Sens. KENNEDY, SEPULVEDA -- read twice and ordered print-
   ed, 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  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
   (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.