Auchincloss Introduces Bipartisan Bill To Support Transit And Reduce Traffic Through Employee Transit Benefits
WASHINGTON, D.C. — Today, U.S. Representatives Jake Auchincloss (D, MA-04) and Mike Lawler (R, NY-17) are announcing the re-introduction of the Supporting Transit Commutes Act (STCA) to encourage employers to subsidize transit for their employees. Public transit ridership is down significantly post-Covid, and traffic is getting worse. The STCA boosts transit ridership by incentivizing companies to offer commuter benefits for employees. Providing transit benefits lowers transit costs for commuters and reduces traffic.
Representative Jim McGovern (D, MA-02) is an original co-sponsor of the STCA.
Prior to 2018, employers did not pay corporate or payroll taxes on transit benefits. The 2018 tax law requires employers to be taxed for providing their employees with transit benefits. Federal policy should empower employers to provide their employees with affordable transit options and get cars off the road.
The Supporting Transit Commutes Act restores the deductibility of transportation fringe benefits. This legislation is endorsed by the Association for Commuter Transportation (ACT), the Amalgamated Transit Union (ATU), the Community Transportation Association of America (CTAA), the National Association of Counties (NACo), the Society for Human Resource Management (SHRM), and the Transport Workers Union (TWU).
“Investments in transit & walkability make for cleaner, more vibrant downtowns and better commutes for riders,” said Rep. 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.”
“Many Hudson Valley families are already struggling with the high cost of commuting, and now the MTA’s decision to offer discounts only to New York City residents adds insult to injury,” said Rep. Lawler. “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.”
“Transit subsidies are a transformative commuter benefit that improves access to jobs and removes barriers to sustainable transportation,” said Association for Commuter Transportation Executive Director David Straus. “When employers offer them, it’s a win for workers and a win for our communities' mobility. Our workforce, businesses, and environment all stand to gain if tax deductibility is restored.”
“Tax incentives like those highlighted by the Supporting Transit Commutes Act are vital to public transit agencies of all sizes as they support one of transit's key benefits: taking people to work,” said Community Transportation Association of America Executive Director Scott Bogren. “The incentives also lead to important partnerships between employers and transit agencies at the local level.”
“The TWU strongly supports the reintroduction of the Supporting Transit Commutes Act. Restoring the employer deductibility is an important tool for encouraging workers to use public transit," said Transport Workers Union International President John Samuelsen. “Ridership will increase and vehicular congestion will decrease under this bill.”
This Supporting Transit Commutes Act:
- Allows full deductibility for transit subsidies, encouraging employers to offer subsidies instead of pre-tax benefits, to maximize the effect these benefits will have in encouraging use of alternative modes of transportation.
- Includes provisions that if an employer offers only a pre-tax option, they are eligible to deduct 50 percent of the amount withheld.