Bus

TransitCenter: stimulus bill a win for transit riders

Posted on February 18, 2009

The Emergency Economic Recovery Act signed into law on Tuesday by President Obama provides significant tax savings, up to $1,000 or more a year, to working Americans who commute by transit, announced TransitCenter Inc., a nonprofit that promotes mass transit use in order to reduce traffic congestion and improve air quality.

The law raises the amount of pretax income that workers enrolled in employer-sponsored commuter benefits programs can use to pay for mass transit -- from $120 per month to $230 per month.

Employees can now save up to $1,000 a year or more on their transit commute, representing a potential $440 a year increase in what they can save if their commuting expenses exceed the current monthly cap of $120 per month. Meanwhile, companies offering the benefit can save up to an additional $100 per employee per year in payroll taxes.

Besides providing relief to commuters who already use the benefit, the legislation will increase the number of employees offered the benefit as a result of the increase in employee and employer savings under the new law. Recent TransitCenter surveys indicate that as many as one-third of employers not currently offering the benefit would do so if the monthly transit benefit were increased significantly and 53 percent of employees said they would take advantage of the benefit if offered to them.

The commuter benefit allows employees to deduct up to $230 per month from their gross income to pay for their mass transit commutes. Employees whose monthly mass transit fees are less than the $230 cap are allowed to deduct the full amount from their paychecks. The measure helps employers save money by lowering their payroll taxes.  Additionally, employees are allowed to deduct up to $230 per month for eligible commuter parking expenses.

View comments or post a comment on this story. (0 Comments)

More News

CapMetro plan would nearly triple high-frequency routes

The changes recommended in the Connections 2025 draft plan would be implemented in phases over the next 10 years.

French bus operator becomes first in Europe to accept Bitcoin

Isilines, a new long-distance passenger transport division of Transdev Group, has been using Bitcoin as a method of payment alongside traditional credit card payments on its website since early August.

2 NJ Transit buses crash, killing driver, injuring 18

One bus struck the other in a T-bone crash at the intersection of Raymond Boulevard and Broad Street just after 6:05 a.m., NJ Transit spokesman Jim Smith said.

CTA Wins 2016 APTA Innovation Award for Ventra Mobile App

The Ventra Mobile App provides one-stop convenience for transit riders who travel on CTA’s “L” trains or buses, Pace buses or Metra commuter trains – enabling the transit rider to plan, manage and pay for their journeys.

Community Transit to add 17 Alexander Dennis 'Double Tall' buses

Four of the new buses will replace aging 60-foot buses that serve the Seattle commuter market; the other 13 double deckers will be expansion buses to accommodate new service.

See More News

Post a Comment

Post Comment

Comments (0)

More From The World's Largest Fleet Publisher

Automotive Fleet

The Car and truck fleet and leasing management magazine

Business Fleet

managing 10-50 company vehicles

Fleet Financials

Executive vehicle management

Government Fleet

managing public sector vehicles & equipment

TruckingInfo.com

THE COMMERCIAL TRUCK INDUSTRY’S MOST IN-DEPTH INFORMATION SOURCE

Work Truck Magazine

The number 1 resource for vocational truck fleets

Schoolbus Fleet

Serving school transportation professionals in the U.S. and Canada

LCT Magazine

Global Resource For Limousine and Bus Transportation

Please sign in or register to .    Close