S T A T E O F N E W Y O R K
________________________________________________________________________
1944
2023-2024 Regular Sessions
I N A S S E M B L Y
January 23, 2023
___________
Introduced by M. of A. STERN -- read once and referred to the Committee
on Labor
AN ACT to amend the tax law, in relation to establishing a qualified
transportation fringe benefits program
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. The tax law is amended by adding a new section 48 to read
as follows:
§ 48. QUALIFIED TRANSPORTATION FRINGE BENEFITS PROGRAM. (A) AS USED IN
THIS SECTION, THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEANINGS:
(1) "QUALIFIED TRANSPORTATION FRINGE BENEFITS" SHALL MEAN ANY OF THE
FOLLOWING PROVIDED BY AN EMPLOYER TO AN EMPLOYEE:
(I) TRANSPORTATION IN A COMMUTER HIGHWAY VEHICLE IF SUCH TRANSPORTA-
TION IS IN CONNECTION WITH TRAVEL BETWEEN THE EMPLOYEE'S RESIDENCE AND
PLACE OF EMPLOYMENT;
(II) ANY TRANSIT PASS;
(III) QUALIFIED PARKING; OR
(IV) QUALIFIED BICYCLE COMMUTING REIMBURSEMENT.
(2) "COVERED EMPLOYEE" SHALL MEAN ANY PERSON WHO PERFORMED AN AVERAGE
OF AT LEAST TEN HOURS OF WORK PER WEEK FOR COMPENSATION FOR THE SAME
EMPLOYER WITHIN THE PREVIOUS CALENDAR MONTH.
(3) "COVERED EMPLOYER" SHALL MEAN AN EMPLOYER FOR WHICH AN AVERAGE OF
TWENTY OR MORE PERSONS PER WEEK PERFORM WORK FOR COMPENSATION. IN DETER-
MINING THE NUMBER OF PERSONS PERFORMING WORK FOR AN EMPLOYER DURING A
GIVEN WEEK, ALL PERSONS PERFORMING WORK FOR COMPENSATION ON A FULL-TIME,
PART-TIME OR TEMPORARY BASIS SHALL BE COUNTED, INCLUDING PERSONS MADE
AVAILABLE TO WORK THROUGH THE SERVICES OF A TEMPORARY SERVICES OR STAFF-
ING AGENCY OR SIMILAR ENTITY. A COVERED EMPLOYER SHALL NOT INCLUDE ANY
GOVERNMENTAL ENTITY.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD02301-01-3
A. 1944 2
(4) "TRANSIT PASS" SHALL MEAN ANY PASS, TOKEN, FARE CARD, VOUCHER OR
SIMILAR ITEM ENTITLING A PERSON TO TRANSPORTATION, OR TRANSPORTATION AT
A REDUCED PRICE, IF SUCH TRANSPORTATION IS:
(I) ON MASS TRANSIT FACILITIES, WHETHER OR NOT PUBLICLY OWNED; OR
(II) PROVIDED BY ANY PERSON IN THE BUSINESS OF TRANSPORTING PERSONS
FOR COMPENSATION OR HIRE IF SUCH TRANSPORTATION IS PROVIDED IN A VEHICLE
MEETING THE REQUIREMENTS OF SUBPARAGRAPH (I) OF PARAGRAPH FIVE OF THIS
SUBDIVISION.
(5) "COMMUTER HIGHWAY VEHICLE" SHALL MEAN ANY HIGHWAY VEHICLE WHERE:
(I) THE SEATING CAPACITY IS AT LEAST SIX ADULTS, NOT INCLUDING THE
DRIVER; AND
(II) AT LEAST EIGHTY PERCENT OF THE MILEAGE USE CAN REASONABLY BE
EXPECTED TO BE:
(A) FOR PURPOSES OF TRANSPORTING EMPLOYEES IN CONNECTION WITH TRAVEL
BETWEEN THEIR RESIDENCES AND THEIR PLACE OF EMPLOYMENT; AND
(B) ON TRIPS DURING WHICH THE NUMBER OF EMPLOYEES TRANSPORTED FOR SUCH
PURPOSES IS AT LEAST ONE-HALF OF THE ADULT SEATING CAPACITY OF SUCH
VEHICLE, NOT INCLUDING THE DRIVER.
(6) "QUALIFIED PARKING" MEANS PARKING PROVIDED TO AN EMPLOYEE ON OR
NEAR THE BUSINESS PREMISES OF THE EMPLOYER OR ON OR NEAR A LOCATION FROM
WHICH THE EMPLOYEE COMMUTES TO WORK BY TRANSPORTATION DESCRIBED IN PARA-
GRAPH FOUR OF THIS SUBDIVISION, IN A COMMUTER HIGHWAY VEHICLE, OR BY
CARPOOL. SUCH TERM SHALL NOT INCLUDE ANY PARKING ON OR NEAR PROPERTY
USED BY THE EMPLOYEE FOR RESIDENTIAL PURPOSES.
(7) "QUALIFIED BICYCLE COMMUTING REIMBURSEMENT" SHALL MEAN, WITH
RESPECT TO ANY CALENDAR YEAR, ANY EMPLOYER REIMBURSEMENT DURING THE
FIFTEEN MONTH PERIOD BEGINNING WITH THE FIRST DAY OF SUCH CALENDAR YEAR
FOR REASONABLE EXPENSES INCURRED BY THE EMPLOYEE DURING SUCH CALENDAR
YEAR FOR THE PURCHASE OF A BICYCLE AND BICYCLE IMPROVEMENTS, REPAIR, AND
STORAGE, IF SUCH BICYCLE IS REGULARLY USED FOR TRAVEL BETWEEN THE
EMPLOYEE'S RESIDENCE AND PLACE OF EMPLOYMENT. THERE SHALL BE AN ANNUAL
LIMITATION WITH RESPECT TO ANY EMPLOYEE FOR ANY CALENDAR YEAR, THE PROD-
UCT OF TWENTY DOLLARS MULTIPLIED BY THE NUMBER OF QUALIFIED BICYCLE
COMMUTING MONTHS DURING SUCH YEAR.
(8) "QUALIFIED BICYCLE COMMUTING MONTHS" SHALL MEAN, WITH RESPECT TO
ANY EMPLOYEE, ANY MONTH DURING WHICH SUCH EMPLOYEE:
(I) REGULARLY USES THE BICYCLE FOR A SUBSTANTIAL PORTION OF THE TRAVEL
BETWEEN THE EMPLOYEE'S RESIDENCE AND PLACE OF EMPLOYMENT; AND
(II) DOES NOT RECEIVE ANY BENEFIT DESCRIBED IN SUBPARAGRAPH (I), (II),
OR (III) OF PARAGRAPH ONE OF THIS SUBDIVISION.
(B) COVERED EMPLOYERS MAY PROVIDE THE FOLLOWING TRANSPORTATION BENEFIT
PROGRAMS TO COVERED EMPLOYEES:
(1) A PRE-TAX ELECTION PROGRAM ALLOWING EMPLOYEES TO ELECT TO EXCLUDE
FROM TAXABLE WAGES AND COMPENSATION, EMPLOYEE COMMUTING COSTS INCURRED
FOR TRANSIT PASSES, COMMUTER HIGHWAY VEHICLE CHARGES, QUALIFIED PARKING,
AND QUALIFIED BICYCLE COMMUTING. THE AMOUNT OF QUALIFIED TRANSPORTATION
FRINGE BENEFITS SHALL NOT EXCEED:
(I) THE MAXIMUM DOLLAR AMOUNT PERMITTED UNDER SUBSECTION (F) OF
SECTION ONE HUNDRED THIRTY-TWO OF THE INTERNAL REVENUE CODE IN CASE OF
THE AGGREGATE OF THE BENEFITS DESCRIBED IN SUBPARAGRAPHS (I) AND (II) OF
PARAGRAPH ONE OF SUBDIVISION (A) OF THIS SECTION;
(II) THE MAXIMUM DOLLAR AMOUNT PERMITTED UNDER SUBSECTION (F) OF
SECTION ONE HUNDRED THIRTY-TWO OF THE INTERNAL REVENUE CODE IN THE CASE
OF QUALIFIED PARKING; AND
(III) THE APPLICABLE ANNUAL LIMITATION IN THE CASE OF ANY QUALIFIED
BICYCLE COMMUTING REIMBURSEMENT.
A. 1944 3
(2) THE MAXIMUM DOLLAR AMOUNT PERMITTED UNDER SUBSECTION (F) OF
SECTION ONE HUNDRED THIRTY-TWO OF THE INTERNAL REVENUE CODE IN THE CASE
OF AN EMPLOYER PAID BENEFIT PROGRAM WHEREBY THE EMPLOYER SUPPLIES A
TRANSIT PASS FOR A PUBLIC TRANSIT SYSTEM OF THE EMPLOYER'S CHOOSING UPON
REQUEST BY EACH COVERED EMPLOYEE OR REIMBURSEMENT FOR EQUIVALENT COMMU-
TER HIGHWAY VEHICLE CHARGES EQUAL IN VALUE TO THE PURCHASE PRICE OF THE
APPROPRIATE BENEFIT; OR
(3) THE MAXIMUM DOLLAR AMOUNT PERMITTED UNDER SUBSECTION (F) OF
SECTION ONE HUNDRED THIRTY-TWO OF THE INTERNAL REVENUE CODE IN THE CASE
OF EMPLOYER PROVIDED TRANSIT FURNISHED BY THE EMPLOYER AT NO COST TO THE
COVERED EMPLOYEE IN A COMMUTER HIGHWAY VEHICLE OR BUS, OR SIMILAR
MULTI-PASSENGER VEHICLE OPERATED BY OR FOR THE EMPLOYER.
(C) (1) THE DULY AUTHORIZED OFFICER HAVING PREDOMINANT JURISDICTION
OVER TRANSPORTATION ISSUES IN THE MUNICIPALITY IN WHICH A TRANSPORTATION
BENEFITS PROGRAM IS ADMINISTERED SHALL PROMULGATE SUCH RULES AND REGU-
LATIONS AS NECESSARY TO IMPLEMENT THE PROVISIONS OF THIS SECTION.
(2) SUCH OFFICER SHALL MAINTAIN AN EDUCATION AND ADVICE PROGRAM TO
ASSIST COVERED EMPLOYERS WITH MEETING THE REQUIREMENTS OF SUBDIVISION
(B) OF THIS SECTION.
§ 2. Subsection (d) of section 615 of the tax law is amended by adding
a new paragraph 6 to read as follows:
(6) THE FULL AMOUNT OF EXPENSES FOR ANY QUALIFIED TRANSPORTATION
FRINGE BENEFIT PROVIDED TO AN EMPLOYEE OF THE TAXPAYER IN ACCORDANCE
WITH SECTION FORTY-EIGHT OF THIS CHAPTER.
§ 3. Paragraph (a) of subdivision 9 of section 208 of the tax law is
amended by adding a new subparagraph 24 to read as follows:
(24) THE FULL AMOUNT OF EXPENSES FOR ANY QUALIFIED TRANSPORTATION
FRINGE BENEFIT PROVIDED TO AN EMPLOYEE OF THE TAXPAYER IN ACCORDANCE
WITH SECTION FORTY-EIGHT OF THIS CHAPTER.
§ 4. This act shall take effect immediately, provided, however, that
section one of this act shall take effect on the one hundred twentieth
day after it shall have become a law; provided, further, that sections
two and three of this act shall apply to taxable years beginning on and
after January 1, 2024.