According to our sources at the Association for Commuter Transportation (ACT) parity could at long last be coming between the tax-free transit and parking benefits. As many know, the IRS increased the Qualified Transportation Fringe Benefits on January 1 (IRS Increases Level of Commuter Benefit to $110 Beginning January 1, 2007; November 9, 2006, CommuterPageBlog) to $110 for transit and $215 for parking. Ever since the transit benefit was established more than 10 years ago, however, it has lagged far behind the long-established parking benefit. And that's just not fair is it?
Now comes word that the new Democratic Congress, energized to deal with global warming and energy conservation issues, would like to put transit and HOV riders on equal footing with those who drive and park. Seems that Rep. James P. McGovern (D.-MA) is spearheading the effort.
VRE, MARC, vanpool riders and other long distance commuters who pay more than $110 per month for their commute should find this very good news indeed. We'll keep you informed informed as we hear more.
Also in the news: "...a new IRS Rule – effective January 1, 2008, says that transit agencies using electronic fare cards will have to have a “shell” that allows them to separately document transit charges vs. parking in order to use them for pre-tax credits. This is to prevent users from using the total allowable tax-free amount for transit and parking (currently $325) and applying that indistinguishably to either transit or parking above the separate limits for each (currently $110 and $215 respectively). This will require software changes by the transit properties, and much public education..." We'll also keep you informed about this.
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