In September 2011 this poster was rejected by the Metropolitan Transportation Authority (MTA) of New York City. Specifically, the MTA said its standards required it to reject ads that contained language that demean individuals or groups of individuals citing Section 5.05(B)(11) of the MTA’s advertising standards handbook
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Update:
Last month a federal judge in New York City ruled the Metropolitan Transportation Authority (MTA) violated the first amendment rights of the Islamophobic group, American Freedom Defense Initiative (AFDI), when MTA rejected a racist political ad the group wanted to place on the sides of city buses. AFDI, led by Pam Geller and Robert Spencer of the anti-Muslim blog Jihad Watch, is the umbrella group of Stop Islamization of America.
Source: Mondoweiss
http://mondoweiss.net/2012/08/savage-geller-bus-ad-hits-san-francisco-muni.html
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This ad was the target of a "correction", the unauthorized alternation of the original message. That alteration may be viewed here