SCHUMER, LIRR PREZ ANNOUNCE LONG ISLAND-WIDE CAMPAIGN TO INFORM COMMUTERS OF NEW MASS TRANSIT TAX BREAK - EACH COMMUTER COULD SAVE UP TO $1,000 EVERY YEAR OR EVEN MORE

Normal 0 false false false MicrosoftInternetExplorer4

Standing at the Garden City Long Island Railroad station, U.S. Senator Charles E. Schumer and LIRR President Helena Williams today unveiled a new public education campaign aimed at educating LIRR commuters about an expanded federal tax break that would save riders hundreds of dollars every year on the commuting costs. Schumer authored legislation, passed as part of the economic stimulus package which doubles the federal tax break for mass transit costs from $120 per month to $230 per month. Riders receive the benefit through their employers, however, right now, less than onethird of Long Island businesses actual offer the tax break. Schumer and Williams are teaming up to launch a broad education campaign, including signs and flyers at dozens of stations in Nassau and Suffolk and on trains, to inform riders that an expanded tax break is available and encourage their employers to participate in the program. Schumer said approximately 50,000 LI commuters participate in the transit benefit program based on our enrollment statistics or about 36% of transit commuters.

 

"Boosting the mass transit benefit is a winwin commuters it puts money in commuters' pockets and takes more cars off the road,"  said Schumer. "The mass transit subsidy program is a great idea, but it is undermined by the fact that we provide a parking benefit that is much more generous. My proposal make s mass transit financially attractive, so commuters will be more than happy to leave their car keys at home-saving them hundreds of dollars, conserving energy and clearing up congestion and traffic along our busiest expressways."

 

"We know times are tough. This increase in the pretax benefit for mass transit riders can make a real difference in our customers' bottom line when it comes to the cost of their commute, especially our core customers who buy monthly tickets," said LIRR President Helena Williams. "With this increased benefit, there is also a call to action for employees to urge their companies to sign up for an EmployerSponsored Transit Benefits Program, so workers can save money. Companies also benefit by paying lower payroll taxes," Williams said.

 

Schumer's bill, passed as part of the economic stimulus package, allows employers to offer their employees up to $230 per month in transit benefits tax free, equal to what they can offer taxfree for parking costs. While the transit benefit typically reduces a commuter's transportation costs by a third or more, the old disparity between the two benefits significant disparity between the two benefits creates an inefficient incentive for people to drive to work rather than take mass transit.

 

In the New York metro area alone, commuters typically save well over $150 million a year because of the transit benefit. Employers have saved significantly as well, over $35 million since the benefit went into effect in the New York area. Approximately 15,000 companies in New York offer the transit benefit covering about 650,000 employees.

 

Below is how the increase in benefit would help Long Island Rail Road commuters:

 

Originating Station	Price of a Monthly Pass to Penn	Percent Covered Under Current Benefit	Percent Covered Under Schumer Plan
Great Neck	$185	64%	100%
Garden City	$185	64%	100%
Syosset	$211	56%	100%
Massapequa	$211	56%	100%
Huntington	$248	48%	92%
Babylon	$248	48%	92%
Port Jefferson	$278	43%	82%
Patchogue	$278	43%	82%

 

 

According to a survey by The Transit Center, a leading advocate for increasing the transit benefit and creator of the nation's first transit voucher, 24% of MetroNorth and 18% of NYC Transit's daily riders take advantage of commuter benefit programs. The added subsidy will not only benefit employees, but will also provide additional taxrelief for businesses who contribute to their employees' deductions and will encourage employers to become involved in the transit choices of their worker.

 

The stimulus package brought the mass transit subsidy equal to the $230 set aside for employee parking expenses, increasing the incentive to take mass transit. The benefit increase would go a long way in reducing traffic delays on Long Island, which have increased by 158% since 1982.

 

Since 2006, the LIRR has been promoting pretax transit benefits through Transit Solutions, which has contacted 970 companies and groups in Nassau County and provided presentations and additional information to 450 of them.  So far, more than 60 companies have signed on to provide the pretax commuting deduction to their employees.

 

The LIRR is ramping up its efforts to make customers aware of the improved tax break with posters and brochures at train stations systemwide.  In Nassau County, Transit Solutions will continue its effort to educate individuals, companies, colleges and hospitals about pretax transit benefit savings via seminars. Transit Solutions also attends major conferences and events for human resources professionals throughout Nassau County. Enrolling is easy. All you have to do is signup at your company in a pretax benefit program offered by TransitChek, WageWorks, CommuterCheck, TotalBen, or WiredCommute.