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.