WASHINGTON — Legislation reintroduced in the House of Representatives seeks to encourage employer support by reestablishing a tax deduction for transportation fringe benefits.
The Supporting Transit Commutes Act, introduced in January, has bipartisan backing, with sponsorship from U.S. Rep. Mike Lawler (R-N.Y.) and Jake Auchincloss (D-Mass.) It reintroduces a bill, H.R. 9464, introduced by Auchincloss and three other House members last fall. That bill failed to advance out of committee.
The bill would allow full deductibility for employers who offer transit subsidies instead of pre-tax benefits. Employers who only offers a pre-tax option are eligible to deduct 50% of the amount withheld.
“The Supporting Transit Commutes Act will help employers provide critical transit benefits, reducing costs for commuters and making it easier for families in my district and across the country to get by,” Lawler said in a press release. Said Auchincloss, “The goal of the Supporting Transit Commutes Act is simple: increase transit ridership. Legislation like this can help kickstart a virtuous cycle of more riders, reduced traffic, and enhanced investment in walkable downtowns.”
