The Association for Commuter Transportation (ACT) strongly supports the introduction of the Commuter Benefit Parity Act of 2015, says ACT's Executive Director Mark Wright. "This bipartisan legislation would establish parity between the parking and transit portions of the transportation fringe benefit by setting the monthly caps for both at $235/month."
Transportation costs represent the second-largest household expense for American families. During the past several years, members of Congress have been working together to bring permanent parity to transit and parking pre-tax benefits.
Permanent parity assists commuters in creating permanent changes to the way they commute, moving toward increased ridership of subways, buses, and vanpools, and reducing traffic congestion.
"Commuters who drive to work receive more favorable tax treatment of their transportation costs than commuters who rely on public transportation," said Rep. Peter King (R-NY), sponsor of the legislation. "The Commuter Benefit Parity Act ensures that commuters receive the same level of tax relief regardless of whether they drive or use public transportation, like the Long Island Railroad. At no cost to the federal government, this legislation is a common-sense solution to ensuring that public transportation is a cost-effective choice."
Without congressional action, the cost for those who use the transit benefit would have left families and commuters with up to $1,440 a year in additional tax burden.
"The transit benefit is a primary tool used by our members to provide commuters with options," said Wright. "It is a very effective tool, and parity is a top priority of ACT members. We thank Congressman King and the other co-sponsors of this legislation."
Joining Rep. King in introducing the legislation is Rep. Randy Hultgen (R-IL), Rep. Leonard Lance (R-NJ), Rep. Robert Dold (R-IL), Rep. Jim McGovern (D-MA), Rep. Earl Blumenauer (D-OR), Rep. Daniel Lipinski (D-IL), and Rep. Sean Patrick Maloney (D-NY).
