Passenger Bus, Rail and Motorcoach Industry News

The proposed package, which would extend the transit commuter benefit to $240 per month and continue the alternative fuel tax credit, as well as a vehicle refueling property tax credit, would go into effect, retroactively, Jan. 1, 2012.

Renewed the call for an extension of federal transit benefits since the congressional supercommittee that planned to reduce the deficit has disbanded. Benefits are slated to drop from $230 per month to $125 per month on Jan. 1.

The House still has to approve a companion bill before President Obama can sign the $848 billion tax cut package, along with the commuter tax break, into law.

The imminent drop in the benefit cap will result in an increase in the cost of commuting of up to 22 percent (assuming a tax rate at the national average of 31.6 percent), according to the report, commissioned by the nonprofit group TransitCenter.