We’ve already discussed what the $10 billion in economic stimulus might mean for high-speed rail. But the Economic Recovery and Reinvestment Act signed into law by President Obama, also includes an increase in the tax benefit for many users of mass transit who can now save up to $1,000 a year or more on their transit commute. This represents a potential $440 a year increase in what they can save currently.
The Tax-Free Commuter Benefits, which let employees pay for mass transit tickets with pretax dollar, will increase 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.
“This law nearly doubles the savings employees can enjoy by using mass transit and sets us on a path to a future that’s both economically and environmentally sustainable,” said Larry Filler, President and CEO of TransitCenter and one of the key drivers behind this provision.
Employers that participate in the program will benefit as well. Companies offering the benefit can save up to an additional $100 per employee per year in payroll taxes.
According to the American Public Transportation Association, switching from driving to riding mass transit reduces CO2 emissions by 4,800 pounds per person per year.
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Hrm…. could someone clear this up for me? If I'm interpreting this thing correctly… the headline sais "Mass Transit Riders", but the story itself, only talks of these benefits being applicable to employees of the transit systems.. so the Bus drivers, Train engineers, etc.. all get more savings… hurah for them… but the true "Mass Transit Riders"…. ya know, anyone and everyone who utilizes these means of transportation, regardless if they work for a Mass Trans company, don't really get a savings from what I can read. So how is this really helpful to the economy as a whole? This would be like the Wall Street Journal posting an article about how much more people will save this year, just from buying intra-company..
Of course, if this article is refering to a program that an Employer of an company can sign up to take advantage of the dollars, then I can see how that could be beneficial… but there's another problem. Lets say companies get involved. You now have an additional 10,000 employees riding mass transit systems than before, due to the savings. As a result, transit systems get major overhauls. The 10 billion helps to offset that cost. The money runs out in 2 years…. now what? Without the savings, people may turn back to their old ways.. now the transit system is over-inflated… they have more means of transportation and fiscal payroll obligations than they can accomodate for. What then?
Hiddukel- This program unfortunately only applies to employers that participate in it. It is my impression that any employer can join (not just transit companies).
Secondly, your crystal ball must be more powerful than mine. Encouraging mass transit in a country where it is largely under-used in many communities will bring more revenue to them, not less.
DiscoSteve- I agree. I think this benefit should be expanded/modified to include employees/employers that do not participate in the particular program.
I get a Mass Transit Voucher from my employer for $120 every month to use on bus, rail, or van pool. How do you get it if your employer doesnt participate in a mass transit program? I think you should be able to write off any mass transit costs off on your taxes if you dont get the vouchers directly. Atleast I’m gonna get double the money to ride twice as much (untill they jack up the cost).
Yes, I agree that this should include those whose employers do not participate in the program as many of us are. Individuals should be able to get tax credit or even better if we could just send in our used tickets and we get percentage of the value back up to a certain amount.
I'm a little confused.
I am a mass transit rider. I purchase a monthly bus pass from my employer for $47 a month. (employer pays $47, and i pay $47 50/50 split).
If I'm only spending $47 a month, this new increase won't help me at all, right???
Did you know that USA and Europe blocked Wikileaks? What do you think about it?
Thanks