The transit commuter benefit is an employer provided federal tax benefit that allows working families to save money on their daily commute, saves businesses of all sizes critical dollars that can be reinvested to create new jobs, helps reduce traffic congestion and improve air quality, saves energy and enhances our national security.
However, the monthly limit of the transit portion of the commuter benefit was reduced from $230 per month to $125 per month on January 1, 2012 because Congress failed to enact legislation to extend the higher level. In the meantime, the monthly limit for the parking portion of the commuter benefit increased from $230 per month to $240 per month due to an automatic cost of living increase. Congress missed a critical opportunity to maintain parity between the transit portion and the parking portions of the commuter benefit when it extended other tax benefits at the end of 2011. For many commuters who use public transportation, Congress' failure to maintain parity between the transit and parking benefits results in a significant increase in their commuting costs and their annual payroll taxes – up to $500 per year. Participating employers will also experience an increase in their payroll taxes.
Congress is now in the final stages of completing a transportation bill that could include a provision to increase the monthly limit for the transit commuter benefit to $240 per month. We need you to act now to urge members of your Congressional delegation to work to ensure that the final version of this legislation restores parity between the parking and transit portions of the commuter benefit. Please voice your support of the transit benefit by clicking the button to the right and sending a letter to your members of Congress.
