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Impact - October 2014

Following CUF’s recommendation, city requires companies to offer pre-tax transit benefits

Following a recommendation from our Innovation and the City report, the Mayor and City Council implemented legislation mandating that New York City companies offer full-time employees access to pre-tax transit benefits.

Tags: economic growth economic opportunity transportation small business innovation economy

Our 2013 Innovation and the City report highlighted innovative policies across the nation for New York’s next mayor and one of its recommendations was requiring businesses with 20 or more employees to provide tax-free commuter benefits to their employees.

In October 2014, the Mayor and City Council implemented this recommendation with new legislation that requires New York City companies to offer full-time employees access to pre-tax transit benefits. The new law, titled Intro 295-A, will take effect in 2016 and substantially lower employees’ transportation fares by removing the costs from their federal income.