New Jersey-2012-SCR96-Introduced

A Concurrent Resolution respectfully urging Congress to reinstate transit benefit parity under the commuter tax benefit program.

Whereas, On January 1, 2012, parity between the maximum transit and maximum parking benefits under the federal commuter tax benefit program expired, with the monthly benefit cap of the transit portion of the program falling from $230 to $120; and

Whereas, Congress has legislated tax benefits for commuters since 1984, permitting employers to subsidize employees' transit and parking costs up to amounts set at equal levels in 2009; and

Whereas, Congress has two bills pending in committee since mid-2011, both entitled the Commuter Benefits Equity Act of 2011 (S.1034 and H.R.2412), which would permanently extend this parity under the commuter tax benefit program; and

Whereas, An analysis by the Commuter Tax Benefits Work For Us Coalition indicates that the commuter tax benefit program saves commuters up to $1,150 annually in federal income tax and may reduce commuting costs by up to 40% when federal, state, and local taxes are considered; and

Whereas, The commuter tax benefit program is a pre-tax benefit for employers as well, enabling businesses to reduce payroll taxes to free resources and create new jobs; and

Whereas, In smaller communities where mass transit is not available, employers may provide vanpools for their employees, which are eligible for the commuter tax benefit program; and

Whereas, The increased use of mass transit would alleviate traffic congestion on roads and highways, saving billions of dollars in lost time and gasoline, and would help decrease America's dependence on foreign oil by reducing our consumption of fossil fuel; and

Whereas, The commuter tax benefit program saves commuters from rising fuel costs by encouraging the use of mass transit; and

Whereas, Commuters taking mass transit can reduce their carbon emissions by 20 pounds a day, or 4,800 pounds a year, thus greatly reducing an individual's carbon footprint and improving the environment; and

Whereas, During a time of recession, the commuter tax credit program greatly lowers the cost of living for working individuals and families; and

Whereas, It is most appropriate for the Legislature of the State of New Jersey, and for the people of every state, to call on the United States Congress, to reinstate transit benefit parity under the federal commuter tax benefit program; now, therefore,

Be It Resolved by the Senate of the State of New Jersey (the General Assembly concurring):

1. The Legislature of the State of New Jersey respectfully urges Congress to reinstate parity between transit and parking benefits under the commuter tax benefit program.

2. Duly authenticated copies of this resolution, signed by the President of the Senate and Speaker of the General Assembly and attested by the Secretary of the Senate and Clerk of the General Assembly, shall be transmitted to the Vice-President of the United States, the Speaker of the House of Representatives, and every member of Congress elected thereto from this State.

STATEMENT

This concurrent resolution respectfully urges Congress to reinstate transit benefit parity under the commuter tax benefit program, as embodied the Commuter Benefits Equity Act of 2011 (S.1034 and H.R.2412).

In general, the expenses of getting to and from work are not deductible, for tax purposes, as a cost of earning one's income. Under section 132(f) of the federal Internal Revenue Code, however, an employer may offer its employees up to a prescribed dollar amount in monthly benefits for transit (by public transportation or eligible vanpool) and for parking costs. Transit benefits can be combined with parking benefits for employees who park at commuter lots and take transit to work.

Prior to 2009, the monthly cap for parking benefits was $230, while the monthly cap for transit benefits was $120. In 2009, Congress increased to maximum benefit for transit to the same amount as that for parking benefits. This parity of maximum benefits expired on January 1, 2012, with the monthly commuter transit cap falling from $230 to $120.

The commuter tax benefit program saves commuters much needed income, reduces employers' payroll taxes, reduces transit congestion, supports energy independence, and improves the environment. The Legislature recognizes the challenging economic climate in the country and believes working individuals and families should continue to be entitled to support for transit expenses under this tax benefit at the same level as provided for parking expenses.