Financial Incentives

Corporate Tax Benefit Information

Under the Transportation Equity Act, IRS code 132(f), employers are allowed to offer payroll tax savings for transportation assistance up to $125 a month per employee for bus/rail passes or vanpool vouchers. For more information visit:

• Employer's Tax Guide to Fringe Benefits IRS code 132(f)
• Commuter Tax Benefits: Implementing Commuter Benefits as One of the Nation's Best Workplaces for Commuters
• State tax credits: Some states have tax credits for eligible employers with commute programs. Contact your local provider to see if you qualify.
• Employers also have the option of subsidizing part of their employees’ commuting costs and allowing employees to pay for the remainder—up to the $125 monthly limit—with pre-tax dollars.

Bicycle Commuting Reimbursement

The 2008 Energy Act added “qualified bicycle commuting reimbursement” to the list of qualified transportation fringe benefits. As of 2009, any employer may reimburse an employee up to $20 per month tax-free for reasonable expenses incurred by the employee for the purchase of a bicycle and bicycle improvements, as well as repair and storage if the bicycle is regularly used for travel between the employee's residence and place of employment. For more information, contact your local provider.