Assembly Bill A1486

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   1486
 
                        2025-2026 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 10, 2025
                                ___________
 
 Introduced by M. of A. RIVERA -- read once and referred to the Committee
   on Ways and Means
 
 AN  ACT to amend the tax law, in relation to authorizing the election of
   qualified transportation fringe benefits
 
   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 50 to read
 as follows:
   § 50. ELECTION OF QUALIFIED TRANSPORTATION FRINGE BENEFITS. (A)  DEFI-
 NITIONS.  FOR  THE  PURPOSES  OF THIS SECTION, THE FOLLOWING TERMS SHALL
 HAVE THE FOLLOWING MEANINGS:
   (1) "BIKESHARING ARRANGEMENTS" MEANS A RENTAL OPERATION AT WHICH BICY-
 CLES, AS DEFINED IN SECTION ONE HUNDRED TWO OF THE VEHICLE  AND  TRAFFIC
 LAW;  BICYCLES  WITH  ELECTRIC ASSIST, AS DEFINED IN SECTION ONE HUNDRED
 TWO-C OF THE VEHICLE AND TRAFFIC LAW; OR ELECTRIC SCOOTERS,  AS  DEFINED
 IN  SECTION  ONE  HUNDRED FOURTEEN-E OF THE VEHICLE AND TRAFFIC LAW, ARE
 MADE AVAILABLE TO PICK UP AND DROP OFF FOR POINT-TO-POINT USE  WITHIN  A
 DEFINED GEOGRAPHIC AREA;
   (2)  "EMPLOYER" MEANS AN ENTITY, INCLUDING BUT NOT LIMITED TO A CORPO-
 RATION, NONPROFIT ORGANIZATION, PARTNERSHIP, JOINT VENTURE, COMMON TRUST
 FUND, LIMITED ASSOCIATION, POOL OR WORKING AGREEMENT, LOCAL  GOVERNMENT,
 OR LIMITED LIABILITY COMPANY, THAT EMPLOYS THREE OR MORE PERSONS IN THIS
 STATE;
   (3)  "LOCAL  GOVERNMENT"  MEANS  THE  SAME  AS SUCH TERM IS DEFINED IN
 SECTION THREE HUNDRED EIGHT OF THE REAL PROPERTY TAX LAW;
   (4) "QUALIFIED TRANSPORTATION FRINGE BENEFITS" MEANS:
   (A) ANY QUALIFIED  TRANSPORTATION  FRINGE  BENEFIT  AS  THAT  TERM  IS
 DEFINED IN 26 U.S.C. § 132(F);
   (B) TNC PREARRANGED TRIPS, AS DEFINED IN SECTION SIXTEEN HUNDRED NINE-
 TY-ONE  OF THE VEHICLE AND TRAFFIC LAW, OR RIDES PROVIDED BY BIKESHARING
 ARRANGEMENTS OR RIDESHARING ARRANGEMENTS FOR USE BY AN EMPLOYEE IN TRAV-
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD03022-01-5
              

 A. 1486                             2
 
 ELING BETWEEN THE EMPLOYEE'S RESIDENCE, THE EMPLOYEE'S PLACE OF  EMPLOY-
 MENT,  OR  A  MASS  TRANSIT  FACILITY  THAT CONNECTS THE EMPLOYEE TO THE
 EMPLOYEE'S RESIDENCE OR PLACE OF EMPLOYMENT; OR
   (C)  MEMBERSHIP IN ANY TRANSPORTATION NETWORK COMPANY, RIDESHARING, OR
 BIKESHARING MEMBERSHIP PROGRAM;
   (5) "RIDESHARING" MEANS THE  VEHICULAR  TRANSPORTATION  OF  PASSENGERS
 TRAVELING  TOGETHER  PRIMARILY  TO  AND  FROM SUCH PASSENGERS' PLACES OF
 BUSINESS OR WORK OR TRAVELING TOGETHER ON A  REGULARLY  SCHEDULED  BASIS
 WITH  A  COMMONALITY OF PURPOSES IF THE VEHICLE USED IN SUCH TRANSPORTA-
 TION IS NOT OPERATED FOR PROFIT BY AN ENTITY PRIMARILY  ENGAGED  IN  THE
 TRANSPORTATION  BUSINESS  AND  IF NO CHARGE IS MADE THEREFORE OTHER THAN
 THAT REASONABLY CALCULATED TO RECOVER THE DIRECT AND INDIRECT  COSTS  OF
 THE  "RIDESHARING ARRANGEMENT", INCLUDING, BUT NOT LIMITED TO, A REASON-
 ABLE INCENTIVE TO MAXIMIZE OCCUPANCY OF THE VEHICLE. "RIDESHARING" SHALL
 INCLUDE  "RIDESHARING  ARRANGEMENTS"  COMMONLY  KNOWN  AS  CARPOOLS  AND
 VANPOOLS,  BUT SHALL NOT INCLUDE SCHOOL TRANSPORTATION VEHICLES OPERATED
 BY ELEMENTARY AND SECONDARY SCHOOLS  WHEN  THEY  ARE  OPERATED  FOR  THE
 TRANSPORTATION  OF  CHILDREN  TO  OR  FROM  SCHOOL  OR ON SCHOOL-RELATED
 EVENTS.
   (B) ELECTION OF QUALIFIED TRANSPORTATION FRINGE BENEFITS  IN  LIEU  OF
 TAXABLE  DOLLAR  COMPENSATION  FOR  CERTAIN EMPLOYEES. FOR TAXABLE YEARS
 BEGINNING ON AND AFTER  JANUARY  FIRST,  TWO  THOUSAND  TWENTY-SIX,  ANY
 EMPLOYER MAY OFFER EMPLOYEES THE OPPORTUNITY TO USE PRE-TAX EARNINGS FOR
 THE PURCHASE OF QUALIFIED TRANSPORTATION FRINGE BENEFITS.
   (C)  RULES  AND  REGULATIONS.  THE DEPARTMENT MAY PROMULGATE RULES AND
 REGULATIONS NECESSARY TO IMPLEMENT AND ADMINISTER THIS SECTION.
   § 2. This act shall take effect immediately and shall apply to taxable
 years beginning on and after January 1, 2026.