Tax Benefits

Did you know you can pay for certain commute costs with pre-tax (Internal Revenue Code Section 132 (F), as amended by TEA-21, Title IX, Section 91) dollars and reap the benefits every day? Under Section 132(F) of federal tax code, an employer can offer its employees up to $230 per month for transit or vanpool costs, and up to $230 in qualified parking costs, and up to $20 for bicycling costs.

Commuter Choice Tax Benefit (1.8MB, pdf)

Here’s how to take advantage of the benefit:

• Find out if your employer offers Commuter Tax Benefits. Your Human Resources staff should be able to tell you. If they don't, you can see if they'll consider offering it. Or, you can contact Sorel Klein at SNCI (707-427-5101) and we’ll contact your employer about the program.
• If you are driving a van, but your vanpool is not registered with our Regional Ridematch Service, you may be missing out on some of these great benefits.
• Make sure you’re using a qualifying commute alternative. The benefit is available to commuters who are in a vanpool, take public transit or use qualified parking. (Carpooling is unfortunately not a qualified alternative because it is difficult to account for its costs.)

For Employers

With Pre-Tax Commuter Benefits

Your Employees will:

• Have easy access to pre-tax dollars – up to $230 monthly – for most commuting costs.
• Save up to 40% in transit-related expenses.
• Help reduce carbon emissions by leaving their cars at home.

Your Company will:

• Enhance its wage and benefit compensation without adding to its financial and administrative obligations.
• Bolster its recruitment and retention programs and stay competitive.
• Reduce its payroll taxes.
• Save on costly capital outlays and maintenance of parking facilities.
• Reinforce its commitment to environmental concerns and corporate sustainability.