The cost of many monthly commuter rail tickets exceeds $120, which used to be the maximum amount transit riders could set aside in pre-tax dollars.
When the federal stimulus was passed last year, the pre-tax income employees enrolled in a transit benefit program could put towards their commutes was increased, from $120 per month to $230 per month. As MTR reported earlier, this increase finally created equal tax treatment of drivers and transit commuters, as workers could already use up to $230/month for parking expenses. The increase also benefited transit riders with expensive commutes – for example, New York City express bus riders who pay $41 per week, or commuters who buy both an NJ Transit and subway monthly pass.
But this transit benefit was not made permanent, meaning that without legislative action it will drop back to $120 per month in January. Dan Neuberger, president and CEO of TransitCenter, which administers the TransitChek benefit in the tri-state area, has noted that the decrease in the benefit will be a “double whammy,” hitting workers soon after transit fares and service cuts took place in New Jersey and New York. Senator Chuck Schumer, who advocated for the inclusion of the benefit increase in the stimulus, is sponsoring legislation to maintain the $230 per month benefit through 2011.
Image: Adam Moreira/Wikimedia Commons.
Does Senator Schumer plan to include this extension as an admendment to the recently introduced tax extender bill that sen baucus introduced?
Thanks,
[...] delegation has been at the forefront of so-far-stalled efforts to maintain the $230/month transit commuter tax benefit and win operating assistance for transit [...]