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Tri-State Region to Congress: Put Transit Tax Benefits at the Top of To-Do List

Today, over 30 elected officials, agencies, and advocates from the tri-state region exhorted Congress to fix the transit commuter tax benefit and to do it as soon as possible. In a joint statement, they said “As Congress reconvenes in Washington for its first days of work in 2014, restoring parity to the commuter tax benefit for transit riders must be at the top of its to-do list.”

Signing onto the statement were Mayor Harry Rilling of Norwalk, CT; the Greater Bridgeport Transit agency, Long Island Rail Road Commuter Council, Melville (NY) Chamber of Commerce, New Jersey Future, Business Council of Fairfield County, Regional Plan Association, Straphangers Campaign, Transport Workers Union Local 100 and several other environmental, transportation and civic advocates from the New York, New Jersey and Connecticut, who called restoring the benefit an economic imperative for transit riders and misguided transportation policy:

The expiration of parity for the transit commuter benefit means fewer dollars in transit riders’ pockets — and fewer dollars in the farebox too. When riders no longer have the option to use pre-tax dollars for transit passes, transit systems may face decreased ridership, which often leads to fare hikes and service cuts.

Just as the transit commuter benefit was slashed, the benefit for parking increased by $5 to $250 per month, which amounts to a federally-endorsed transportation policy that incentivizes driving, leading to more cars on the region’s already congested and deteriorating roads. Restoring and enacting permanent parity for transit riders, and making that parity retroactive to January 1, establishes a balanced and progressive fiscal policy.

Others in the region have also called for Congress to take action. On Monday, Connecticut Senator Richard Blumenthal and New Haven Mayor Toni Harp held a press conference calling for the restoration of the benefit. New York Senator Charles Schumer and New Jersey Senator Bob Menendez also held events last November and December calling for the extension of the transit benefit’s parity. A bill in the House which would set the transit and parking benefits permanently equal to one another at $220/month has 60 sponsors, and a bill in the Senate to establish commuting parity at $250/month has 11.

At the top of Congress’ to-do list for January is an appropriations bill that must be passed to fund the government through September. Lawmakers reportedly hope to pass the bill by January 17, before going home for a week-long recess. Signers of today’s statement urged them to deal with commuting benefits in the appropriations bill or otherwise make it a priority. Traditionally, transit benefits are dealt with as part of a larger package of tax credits (a so-called “tax extenders” bill). But Congress is unlikely to take up the tax extenders bill until March at the earliest, according to the Washington Post.

The longer the commuting benefit goes unaddressed, the more chaos is created for employers and commuters. For example, in 2012 the transit benefit dropped to $125 at the start of the year and was not restored until 2013. Lawmakers made the benefit retroactive for 2012, but the mechanics of actually taking advantage of the retroactive benefit were so difficult that many commuters were unable to use it.

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[…] such as improved bus service along the I-287/Tappan Zee Bridge corridor, calling on Congress to restore parity for the transit commuter benefit, and being a champion for the Bergen Loop, which would directly […]

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[…] over transit). According to Streetsblog, New York Senator Chuck Schumer, who has supported tax benefits for transit riders, Port Authority reform and trans-Hudson rail infrastructure, may be next in line to join the […]

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[…] such as improved bus service along the I-287/Tappan Zee Bridge corridor, calling on Congress to restore parity for the transit commuter benefit, and being a champion for the Bergen Loop, which would directly […]

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[…] We’ve been here before: fighting to make sure our federal tax policy doesn’t encourage people to drive instead of using transit. Federal commuter tax benefits enable commuters to use pre-tax dollars to pay for their commute, and currently about 2.7 million workers in the United States take advantage of these benefits. Unfortunately, on January 1, 2015, Congress failed to act, and the parity between transit and parking benefits expired. This has once again led to an unbalanced situation in which people who drive to work are now eligible to use up to $245 in pre-tax earnings for parking each month, while the maximum pre-tax benefit for those who use transit is only $130. […]

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