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

MCI to manufacture 184 Commuter Coaches for NJ TRANSIT

Through a competitive procurement process, the agency executed a contract with MCI in November 2015 to manufacture and deliver up to 1,219 commuter coaches.

Submit your Innovative Solution now!

Have you recently partnered with a solutions provider within the last year to implement a new innovation at your operation that has helped you save money, run more efficiently, streamline operations, improved customer satisfaction or increased ridership? Tell us what you did and how it has positively impacted your business.

First Transit awarded Philadelphia American Airlines shuttle ops contract

The company will transport passengers on the ramp side of the airport between all terminals serving the airline. The contract also includes preventative maintenance.

REV Bus Group partners with Schetky NW Bus Sales for spring events

Will present Champion Bus unit at Schetky booth at the Argentum Senior Living Executive Conference and Tradeshow (formerly ALFA) in Denver May 9 to 12.

XL Hybrids introduces cloud-based fleet analytics system

XL Link is currently measuring key performance indicators in vehicles equipped with XL3® Hybrid Electric Drive Systems for major fleets, such as the City of Boston, Yale University, AmeriPride Services and Montgomery County, Md., to name a few.

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