Policy alert: Restoring transit pass and vanpool tax deductibility
Empowering employers to shape affordable commutes
Today, ACT joined Rep. Jake Auchincloss in Brookline, MA for a press conference to to introduce his legislation to restore commuter benefit tax deductibility for employers.
This event assembled elected leaders, community stakeholders, and supporters focused on developing and expanding transportation benefits for commuters.
In addition to Rep. Auchincloss, speakers included Rep. Tommy Vitolo, MBTA General Manager & CEO Phillip Eng, Brookline Selectboard Member Michael Sandman, Transit Matters Executive Director Jarred Johnson, and ACT Executive Director David Straus. Today's event builds on the momentum from ACT's 2023 Fly-in and press conference in Washington DC where Rep. Auchincloss first introduced the proposed bill.
The legislation includes the following advancements:
- It restores the ability for employers to deduct fringe benefits for using a vanpool and transit pass
- It enables employers offering only the pre-tax option to still deduct 50% of the amount withheld
“This bill sets the stage for employers to guide employees toward a shift from driving to more sustainable modes of transportation,” said David Straus, Association for Commuter Transportation Executive Director. “Through the provision of commuter benefits, organizations can deliver more affordable travel to and from work site, saving employees money and creating more sustainable communities. Restoring this tax deductibility will encourage more employers to offer these valuable benefits."
ACT is committed to improving the lives of all in our communities through TDM. If this bill is adopted, employers will be positioned to support more affordable, efficient, and accessible commutes for workers. Thank you to Rep. Auchincloss for spearheading this legislation and vital discussion. The association will continue to advocate for commuter benefits and other Transportation Demand Management strategies that create a better journey for all.
Learn more about the conference and bill
View remarks from ACT's Executive Director David Straus below.