Twenty five years ago, a simple yet ingenious idea took root: By allowing workers to defray public transportation costs through their employers' benefits packages, we could reduce traffic congestion and improve air quality.
In 1998, Congress amended the tax code to allow employees to take advantage of the benefit using pre-tax dollars.
In 2009, Congress raised to $230, the monthly tax-free cap commuters could spend on the transit benefit. This created parity between the transit portion of the commuter benefit and the parking portion of the benefit, further promoting the use of eco-friendly modes of transportation.
Today, commuter benefits have joined health, retirement and disability at the top of the list of voluntary benefits offered by companies. While the monthly parking benefit cap will remain at its current $230 level, the monthly transit benefit cap is set to be cut nearly in half at the end of 2011 – unless Congress acts to extend it.
If you support maintaining the transit benefit at its current level - take action now.
