Pre-tax transit benefits return to parity with parking in 2013
By Bill Holloway
The fiscal cliff deal signed by President Obama on January 2nd will make it cheaper to use transit in 2013 for many workers. The deal includes a provision raising the maximum monthly pre-tax benefit that employers can offer their employees for using transit, from the current $125 a month to $240 a month. As reported by Transportation Issues Daily, this change brings allowable pre-tax transit benefits into alignment with the limits on employer-provided parking benefits for employees. However, while the limits on pre-tax parking benefits are ongoing, the increased limit on transit benefits will expire at the end of this year.
Bill Holloway is a Transportation Policy Analyst at SSTI.