Transit Tax Benefit Increases with “Fiscal Cliff” Legislation
Great news for AC Transit passengers, or for those considering taking transit to work!
On January 1, the Senate passed legislation to avert the “fiscal cliff” (by a vote of 89 – 8). Included in the legislation is a provision that increases pre-tax company-provided commuter benefits from $125 per month in 2012 to $240 per month.
The measure is likely to make it more attractive for commuters to take transit to work, since the benefit amount is now on par with the benefit offered for parking, and many suburban commuters typically spend at least $240 per month on transit costs.
The legislation also makes the newly-increased benefit amount retroactive to January 1, 2012, though the mechanism for calculating those past benefits hasn’t yet been determined. Legislators are currently awaiting guidance from the IRS.
The increased benefit amount is currently set to expire at the end of 2013.