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Rail News Home Federal Legislation & Regulation

12/7/2011



Rail News: Federal Legislation & Regulation

Transit riders face higher commuting costs if Congress doesn't act, APTA says


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Americans who use public transportation services will face increased commuting costs if Congress does not extend the transit commuter benefit by the year’s end, according to the American Public Transportation Association (APTA).

Legislation that temporarily established parity between parking and transit/vanpool benefits at $230 per month per commuter was extended under the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act through 2011. The benefit will revert to $125 per month when the provision expires at year’s end, while the parking benefit will increase to $240, APTA officials said in a prepared statement.

They are calling on Congress to permanently extend the maximum transit commuter tax benefit to equal that of the parking tax benefit.

“Unless Congress acts, there will be a financial bias in the federal tax code against public transit use,” said APTA President and Chief Executive Officer Michael Melaniphy. “If the transit commuter benefit is allowed to expire, it will serve as a tax increase on transit riders and their employers.”