# Supporting Transit Commutes Act: Plain Language Summary

This bill makes a change to how employers can handle taxes when they help their workers pay for commuting. Right now, when a company provides certain transportation benefits to employees—like paying for public transit passes, vanpool fees, or parking—the company generally can't deduct those costs from their own taxes. This bill would allow employers to deduct these transportation fringe benefits, which means companies would get a tax break for helping their workers commute.

The bill specifically covers two types of commuting help: public transportation (like buses and trains) and vanpools. However, there's a limit to how much employers can deduct. The deduction is capped at the same amount that employees are already allowed to receive tax-free for these benefits—currently around $315 per month for transit and vanpool combined. If an employer offers employees a choice between getting the transportation benefit or receiving cash instead, the employer can only deduct half of the benefit amount. This reduced deduction is meant to prevent employers from simply giving employees cash and claiming it as a transportation benefit.

The practical effect is that employers would have a financial incentive to offer or expand transit benefits to their workers. Since companies get a tax break, they might be more willing to subsidize employee commuting costs, which could make public transportation more affordable for workers. The bill would take effect immediately after it's signed into law and would apply to any transportation benefits provided going forward.

Supporting Transit Commutes Act

Auchincloss, Jake

Supporting Transit Commutes Act&nbsp;This bill provides employers a tax deduction for certain transportation fringe benefits given to employees.Under the bill, employers may deduct costs for providing employees transportation in a commuter highway vehicle (e.g., van pool) between the employee’s home and place of work or a transit pass. The amount of the deduction cannot exceed the aggregate exclusion amount for such fringe benefits ($325 per month per employee in 2025 and adjusted annually). Further, under the bill, the deduction cannot exceed 50% of such amount for transportation fringe benefits provided under a salary reduction agreement.