On Friday, December 18, Congress passed a law to provide permanent parity between transit and parking benefit cap levels. Under the new provision, the monthly IRS cap on pre-tax commuter benefits deductions for 2016 will increase to $255 for both public transportation and driving commuters – an increase from $130 and $250 respectively.
This is welcome news for public transit commuters across the country, particularly those in metro areas such as New York City, where commuting costs are high. Employees participating in commuter benefits programs will be able to save significantly more money, and in turn, employers will save more on reduced payroll taxes.
This was the result of a hard fought, team effort led by Senators Charles Schumer and Bob Menendez and Congressmen Peter King and Earl Blumenauer. In addition, several other members of Congress played key roles, including Representatives Barbara Comstock, Joe Crowley, Robert Dold, Daniel Lipinsky, Paul Tonko, and Randy Hultgren.
This is a huge win for commuters and organizations across the U.S.
Cheers to big savings in 2016!