State Senator Jeremy Cooney likens his proposal to cut commuting costs for workers to a health savings account, or HSA, but for transportation.
Cooney, D-Rochester, is sponsoring a bill that would let employees set aside some of their pre-tax earnings to use toward qualified transportation expenses as a fringe benefit, as long as their employers opt in. The exemption would apply only to state taxes.
"This is empowering people to choose a mobility option that works best for them and their employer," Cooney said as he outlined the bill during a news conference at the offices of Reconnect Rochester, a transportation advocacy group.
Cooney, who leads the Senate transportation committee, said employers would decide which transportation options would be covered under the benefit. For example, an employer could allow that pre-tax benefit to be used toward the cost of buying or repairing a bicycle, joining a bike share, using a ride share service, parking costs, and public transit passes. Similar programs are in place in New York City and Washington, D.C., and similar exemptions exist under federal tax law.
They would not, however, be able to use the pre-tax money to buy or repair a car. Cooney said the idea is to incentivize the use of transit and other mobility options.
Greater Rochester Chamber of Commerce President and CEO Bob Duffy supports the legislation. He said he often hears from employers that transportation and child care are the two biggest barriers they face in finding workers.
"I think what this legislation does is it bridges those gaps that exist right now, and I would hope it passes unanimously," Duffy said.
Reconnect Rochester has also thrown its support behind the legislation, which is sponsored in the Assembly by Jonathan Rivera, D-Buffalo. Mary Straropoli, the organization's co-executive director, said the measure creates a new way for employers to support the transportation needs of their workers while encouraging commuting by modes such as bikes and transit.
"There are many workplaces, especially downtown, that are centrally located, where transit is rich and biking is very accessible," Staropoli said. "And this can be, you know, a really nice incentive to promote those alternatives and those more sustainable modes of transportation."
