NYC Law Requires Mass Transit Tax Benefit

NEW YORK (AP) -

Mayor Bill de Blasio on Monday signed into a law a bill requiring businesses with 20 or more full-time employees to offer federal tax benefits for mass transit users.

The benefit lets participants use up to $130 a month of their pre-tax earnings to pay for transit costs. That amounts to a discount because it lowers their tax bill.

The law will extend transit benefits to more than 450,000 New Yorkers who are not currently offered them.

Some businesses say it could result in administrative burdens and added costs. The law, sponsored by Councilman Dan Garodnick, takes effect on Jan. 1, 2016.