Commuter Check Applauds Transit Benefit Cap Increase
2.17.2009
Commuter Check applauds President Obama and Congress’ on increasing the monthly cap of the transit/vanpool portion of the transportation fringe benefit to $230.
Accor Services USA, provider of national commuter
benefit programs Commuter Check Benefit Solutions and WiredCommute, applauds President
Obama and Congress’ on increasing the monthly cap of
the transit/vanpool portion of the transportation fringe benefit to $230. The increased maximum equalizes the
transit and parking portion of the transportation fringe benefit, bringing
parity to the financial incentive to take public transportation or drive to and
from work.
Click here to read a full copy of the bill HR1511.
Equal
benefit, equal incentive
The transit benefit plays an important role in the way
employers can directly impact their employees commuting habits. Plus, increased participation in commuter
benefits increases employers’ payroll tax savings. With this increase employers can offer
employees up to $230 per month in pre-tax parking benefits and up to $230 per
month in pre-tax transit/vanpool benefits. Eliminating the
disparity between the monthly caps equalizes the financial incentive to take
public transportation or drive to work alone.
The change will save commuters with the longest and most costly
commutes more than $1000 per year on average in tax savings. By creating parity between the transit and
parking portions of the commuter benefit, more Americans will be able to take
advantage of this program, reduce their commuting costs, and potentially
increase the number of commuters who opt to take public transportation, which
would result in tremendous environmental benefit for America’s traffic congested cities.
Public
transit use equals smaller carbon footprints
According to the Environmental Protection
Agency (EPA), a single car commuter can save 6,9000 pounds of carbon per year
by switching to public transportation, which is equal to recycling one ton of
waste instead of putting it into a landfill.
As an example, more than 300,000 people participate in the
Commuter Check and WiredCommute programs today.
By the EPA estimate that 1.5 gallons of gas are used per commuter per
day, these 300,000 participants save 450,000 gallons of gas every day they take
public transit instead of commuting in a single-occupancy vehicle. In addition, based on an average commute of
100 miles per week per commuter, those 300,000 participants save 9.3 million
pounds of hydrocarbons, 69 million pounds of carbon monoxide, 4.5 million
pounds of oxides of nitrogen and over 1.3 million pounds of carbon dioxide each
year (calculated using the
Accor Services USA Emissions Savings Calculator). This
equates to supplying energy for 100,000 households each year.
Gerard Bridi, President of Accor Services USA said, “I applaud Congress for their action today. The current economy
has put even greater stress on families across the country. This increase in the transit benefit will help
commuters manage rising commute expenses and potentially encourage more
commuters to choose public transportation, which has great environmental
benefits for our country. As Congress
finds ways to create jobs and stimulate the economy, this provision will ensure
that Americans have a cost effective way to get to and from those jobs.”