Transit Tax Issues Await Decisions on Extensions02-Dec-2013
Action is needed before the end of the year for the transit commute benefit. Currently, commuters who use public transportation can receive the same tax-free transportation benefit from their employers as commuters who drive private cars and pay for parking—up to $245 per month. Unless Congress acts before the end of 2013, public transit and vanpool commuters will see their maximum allowable pre-tax and tax-free benefit plunge to $130 per month while parking will increase to $250 per month, per the most recent Internal Revenue Service Guidance.
The Alternative Fuels Tax Credit provides public transportation providers with financial assistance in the form of a tax credit, to assist with converting their bus fleets from diesel to compressed natural gas. Without this assistance, providers may be unable to continue moving towards a cleaner fuel source.