According to the US Census, 76.3 percent of U.S. workers drive alone to work. The Internal Revenue Code Section 132(f) provides incentives for employers to encourage alternative mode use, specifically transit and vanpooling, through commuter benefits to employees. This study focused primarily on the federal tax laws that allow employers to subsidize or have their employees use pre-tax salary to pay for qualified transit, vanpooling and parking costs. These benefits are described as qualified transportation fringe benefits in Internal Revenue Code Section 132(f). There were five objectives of this study:
1. Evaluate the current level of use of commuter benefits among employers;
2. Examine how commuter choice programs can be expanded to provide maximum utility to employers and employees, and the creation of commuter choice equity;
3. Survey and interview employers to understand their reaction to expansion and equity;
4. Estimate the tax revenue impact of those changes; and
5. Develop a set of recommendations for expanding commuter tax benefit programs.
Travel demand management (TDM) is not one action, but rather a set of actions or strategies, the goal of which is to encourage travelers to use altern...
The Taxpayer Relief Act of 1997 makes offering a menu of commute benefits, sometimes called transportation fringe benefits, far more appealing to empl...
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United States Department of Transportation
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