A tax break allowing mass transit riders to save more than $1,000 a year is set to expire at the end of the year, U.S. Sen. Chuck Schumer warned Monday.
Schumer vowed to make the transit tax break — the Commuter Benefits Equity Act — permanent.
With the benefit, riders get up to $245 per month deducted from their earnings pre-tax for commuting expenses. A rider earning $50,000 with commuting costs of approximately $2,900, for example, would save $960.
Approximately 700,000 New York area commuters saved over $330 million last year.
“As the price of commuting continues to climb, this tax break has become increasingly vital,” Schumer said. “Mass transit is the lifeblood of the New York area, and this provision helps keep it flowing and affordable.”
Without the extension, the current allowable pre-tax deduction of $245 a month would be slashed to $130 a month, Schumer said. Bus and subway riders using monthly MetroCards would still be fully covered, but a commuter who buys the weekly express bus pass would would see a significant reduction in savings.
Monthly Long Island Railroad passes for commuter using Penn station run from a low of $177 a month for some city resident, up to as high as $466 a month for Long Islanders living in the Hamptons. Metro-North monthly passes range in price from $167 to as high as $500, depending on the distance traveled.
