S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   3145
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                             January 23, 2025
                                ___________
 
 Introduced  by  Sen.  COONEY -- 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 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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD03022-01-5
              

 S. 3145                             2
 
 ARRANGEMENTS OR RIDESHARING ARRANGEMENTS FOR USE BY AN EMPLOYEE IN TRAV-
 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.