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S4509
SENATE, No. 4509
STATE OF NEW JERSEY
222nd LEGISLATURE
�
INTRODUCED JUNE 24, 2026
Sponsored by:
Senator� PATRICK J. DIEGNAN, JR.
District 18 (Middlesex)
SYNOPSIS
���� Expands employer provided commuter transportation
benefit to include micromobility-sharing arrangements and transportation
network company services.
CURRENT VERSION OF TEXT
���� As introduced.
��
An Act
concerning certain employer provided commuter
transportation benefits and amending P.L.1992, c.32.
����
Be It
Enacted
by the Senate and General Assembly of
the State of New Jersey:
���� 1.��� Section 3 of P.L.1992,
c.32 (C.27:26A-3) is amended to read as follows:
���� 3.��� As used in this
amendatory and supplementary act:
���� "Alternative means of
commuting" means travel between a person's place of residence and place of
employment or termini near those places, other than in a motor vehicle occupied
by one person.� Alternative means of commuting include, but are not limited to,
public transportation,
micromobility-sharing arrangements, transportation
network company services,
car pools, van pools, bus pools, ferries,
bicycling, telecommuting, and walking, which may be used in conjunction with
such strategies as flextime, staggered work hours, compressed work weeks, and
like measures.
���� "Clean Air Act"
means the federal Clean Air Act, as amended by Pub.L.101-549 (42 U.S.C. s. 7401
et seq.) and as subsequently amended or supplemented.
���� "Commissioner" means
the Commissioner of Transportation.
���� "Commuter transportation
benefit" means the cost to employers of providing benefits to an employee
for utilizing an alternative means of commuting and the cost of providing
services and facilities which would encourage or facilitate use by employees of
alternative means of commuting.� The benefit shall include the costs of parking
by employees at park-and-ride lots.
���� "Department" means
the New Jersey Department of Transportation.
���� "Employee" shall
have the same meaning as provided in the "unemployment compensation
law," (R.S.43:21-1 et seq.).
���� "Employer" shall
have the same meaning as provided in the "unemployment compensation
law," (R.S.43:21-1 et seq.).
����
"Micromobility-sharing
arrangement" means a rental operation at which bicycles, low-speed electric
bicycles, motorized bicycles, low-speed electric scooters, or motorized
scooters are made available to pick up and drop off for point-to-point use
within a defined geographic area.
����
"Prearranged
ride" means the same as that term is defined in section 2 of P.L.2017,
c.26 (C.39:5H-2).
���� "Pre-tax transportation
fringe benefit" means a pre-tax election transportation fringe benefit
that provides commuter highway vehicle and transit benefits, consistent with
the provisions and limits of section 132(f)(1) of the United States Internal
Revenue Code of 1986 (26 U.S.C. s.132(f)(1)) at the maximum benefit levels
allowable under federal law, to be deducted for those programs from an
employee's gross income pursuant to section 132(f)(2) of the United States
Internal Revenue Code of 1986 (26 U.S.C. s.132(f)(2)).
���� "Program" means the
Travel Demand Management Program established pursuant to section 5 of P.L.1992,
c.32 (C.27:26A-5) and continued pursuant to P.L.1996, c.121 (C.27:26A-4.1 et
al.).
����
"Shared ride"
means the same as that term is defined in section 1 of P.L.2018, c.47
(C.39:5H-4.1).
���� "Transportation
management association" or "TMA" means a nonprofit corporation
approved by the department as coordinating transportation services, including
but not limited to public transportation, van pools, car pools, bicycling, and
pedestrian modes, as well as strategies such as flex time, staggered work
hours, and compressed work weeks, for corporations, employees, developers,
individuals, and other groups.
����
"Transportation
network company" means the same as that term is defined in section 2 of
P.L.2017, c.26 (C.39:5H-2).
����
"Transportation
network company services" means a prearranged ride provided by a
transportation network company.� "Transportation network company
services" shall only include a prearranged ride that is not a shared ride
when: �the prearranged ride commences between the 8:00 p.m. and 6:00 a.m.; the
rider requests an accommodation for the prearranged ride pursuant to the
"Americans with Disabilities Act of 1990," 42 U.S.C. s.12101 et seq.;
the transportation network company does not offer a shared ride option at the
time and location of the request; or a shared ride is not available within 10
minutes of the request, or within such other period as the commissioner may
provide.
���� "Travel demand
management" or "TDM" means a system of actions whose purpose is
to alleviate traffic-related problems through improved management of vehicle
trip demand.� These actions, which are primarily directed at commuter travel, are
structured to reduce the dependence on and use of single occupancy vehicles, or
to alter the timing of travel to other, less congested time periods or both.
(cf: P.L.2019, c.38, s.1)
���� 2.��� This act shall take
effect immediately.
STATEMENT
���� This bill expands employer
provided commuter transportation benefits to include micromobility-sharing
arrangements and transportation network company services, making their
provision eligible for certain tax benefits as alternate means of commuting.
���� Under current law, certain employer
provided commuter transportation benefits are excluded from the calculation of
gross income, up to an annual limit per employee.� An employer providing such
benefits may be eligible for a tax credit, subject to a limit per employee.� Commuter
transportation benefits include the provision of benefits to an employee for
using an alternative means of commuting.� Currently, an "alternate means
of commuting" is defined as travel between a person's place of residence
and place of employment or termini near those places, other than in a motor
vehicle occupied by one person. �Alternative means of commuting include, but
are not limited to, public transportation, car pools, van pools, bus pools,
ferries, bicycling, telecommuting, and walking, which may be used in
conjunction with such strategies as flextime, staggered work hours, compressed
work weeks, and like measures.
���� This bill amends current law
to include micromobility-sharing arrangements and transportation network
company services in the definition of "alternate means of commuting,"
making employer provided commuter transportation benefits for
micromobility-sharing arrangements or transportation network company services excludable
from gross income.� An employer may receive a tax credit for the provision of
such benefit, subject to a limit per employee.
���� Under the bill, a "micromobility-sharing
arrangement" is a rental operation at which bicycles, low-speed electric
bicycles, motorized bicycles, low-speed electric scooters, or motorized
scooters are made available to pick up and drop off for point-to-point use
within a defined geographic area.� "Transportation network company
services" means a prearranged ride provided by a transportation network
company. �"Transportation network company services" only include a
prearranged ride that is not a shared ride when:� (1) the prearranged ride
commences between the 8:00 p.m. and 6:00 a.m.; (2) the rider requests an
accommodation for the prearranged ride pursuant to the "Americans with
Disabilities Act of 1990"; (3) the transportation network company does not
offer a shared ride option at the time and location of the request; or (4) a
shared ride is not available within 10 minutes of the request, or within such
other period as the commissioner may provide.
���� A "transportation network
company" is a corporation, partnership, sole proprietorship, or other
entity that is registered as a business in the State or operates in this State,
and uses a digital network to connect a transportation network company rider to
a transportation network company driver to provide a prearranged ride. �Currently,
the New Jersey Motor Vehicle Commission lists Lyft, Front, Uber, and a
subsidiary of Uber as authorized transportation network companies in this
State.