As we all wait anxiously at our mailboxes for our next round of stimulus checks to come to the rescue (don't forget to SPEND it this time) I have been informed of another reason why I should like this bill. For the first time pre-tax transportation benefits, transit and vanpool are on equal playing fields with those who drive to work and park.
Being new to the region, one of the things I was looking forward to was living in a city that had decent transit and trains. Soon I realized that due to my attraction to transit I also needed to add value to my Smarttrip card constantly and when does someone really have time for those lines? I'm still trying to figure out if I can purchase fares online without purchasing a fare card and have it load the next time I approach a vending machine - but I digress. Back to the new bill.
The American Recovery and Reinvestment ACT of 2009 will provide a bundle of savings and unprecedented tax savings for transit and vanpool riders. The new stimulus bill, signed into law on February 17 by President Obama, included a provision that will increase the monthly pre-tax transit and vanpool benefit amount allowable to employees by their employers. As of February 17, 2009, employers can provide employees with up to $230 in pre-tax dollars for transit and vanpool use to and from the work site. For those of you who don't know, the new act nearly doubles the tax-free transit and vanpool benefit amount from January 1, 2009 which set the limit at $120. This is good for me since my current commute is over the $120 monthly limit.
Of course, the new bill is not going to entice everyone to leave their cars at home and start using transit or vanpooling, nor would I want to share MY train with all of those new riders, but it's more about making it a comparable alternative. The new provision is set to expire on January 1, 2011, but like most things approved by Congress, once the people get it, it's hard to take away. It is expected that Congress will make the increase permanent. If your companies offer pre-tax benefits, make sure they are taking full advantage - if not, what better time to start than now!
Wendy Duren is a Manager of Business Development at Arlington Transportation Partners, and commutes with Metrorail daily.
Comments