Senate Approves Increase to Pre-Tax Benefits for Public Transportation Commuters

WASHINGTON, March 14, 2012 /PRNewswire/ -- Today, the United States Senate approved legislation that would reverse cuts to pre-tax transit accounts available to commuters who use public transportation and vanpools.  The bill now moves to the House of Representatives.  As crafted, the legislation increases the monthly amount that can be set aside on a pre-tax basis for public transportation expenses to $240 a month, up from the reduced limit of $125 a month that became effective at the beginning of the year.  

"Millions of Americans rely on pre-tax commuter accounts to cut down the expense of their commute to work.  We applaud the leadership of the Senate and urge the House of Representatives not to delay in approving the bill," said Dan Neuburger, President of WageWorks Commuter Benefit Services and member of the CommuterBenefitsWorkForUs.Com coalition.  WageWorks is a national provider of tax-advantaged benefits.

The tax benefit for commuters using mass transit is embedded in the Surface Transportation Reauthorization bill and includes a retroactive extension of benefits dating back to January 1, 2012, when benefits for public transportation lapsed to a lower level.  While benefits for mass transit riders were reduced from $230 to $125 per month, the limit to cover parking costs was increased from $230 to $240 per month.

"There's no reason for Congress to grant preferential treatment for individuals driving to work over those taking public transportation," said Gerard Bridi, President of Edenred USA, a national provider of commuter benefits. "With gas prices soaring and more people turning to public transit, Congress should encourage commuters to use public transportation, not penalize them."

Paul Dean, Vice President of TransitCenter, agreed, saying "We applaud the U.S. Senate for taking this important step to restore parity between the transit and parking commuter benefit.  At a time when gas prices are at an historic high point, and millions of Americans are turning to public transportation, the transit benefit is an important tool to help keep the cost of commuting affordable for working families."

"The transit benefit is an important tool to promote commuter vanpooling in areas where more traditional public transportation services are not available," added Jon Martz, Public Policy Chair at the Association for Commuter Transportation. "The provision in the Senate transportation bill extending parity will provide Americans in communities, both large and small, the ability to affordably utilize transportation alternatives such as vanpooling."

For more information visit commuterbenefitsworkforus.com

About Commuter Benefits Work For Us
The CommuterBenefitsWorkForUs.com coalition is dedicated to promoting public transit, vanpooling and the use of pre-tax transit benefits in order to reduce traffic congestion and improve air quality, while supporting American families and the general economy. The coalition includes public agencies, transit operators, private businesses and concerned citizens.

SOURCE CommuterBenefitsWorkForUs.Com