RELEASE: AUCHINCLOSS INTRODUCES BIPARTISAN BILL TO SUPPORT JOB GROWTH AND PUBLIC TRANSIT THROUGH EMPLOYEE TRANSIT BENEFITS
WASHINGTON, D.C. — Today, U.S. Representatives Jake Auchincloss (D, MA-04), Marcus Molinaro (R, NY-19), Jim McGovern (D, MA-02) and Earl Blumenauer (D, OR-03) are announcing the introduction of theSupporting Transit Commutes Act (STCA) to encourage employers to provide transit subsidies to their employers. Overall public transit ridership is down significantly post-Covid, and nearly half of Americans have no access to public transit. This legislation boosts transit ridership by incentivizing companies and small businesses to provide commuter benefits for employees. Providing transit benefits lowers overall transit costs for commuters, stimulates job growth, and increases investment in rural and urban communities alike.
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 commuting options. The Supporting Transit Commutes Act restores the deductibility of transportation fringe benefits.
Federal policy should empower employers to provide their employees with affordable transit options to remove obstacles in commuting to work. Programs like commuter vanpooling are used by companies to grow their workforces by simplifying and reducing the cost of employee commutes. The Supporting Transit Commutes Act stimulates job growth in rural and urban communities by supporting access to reliable and affordable transportation systems.
“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, job growth, and enhanced investment in our communities.”
“With inflation pressing down on families, farmers, and small businesses, we ought to be doing more to make transportation more affordable,” said Rep. Molinaro. “These transit benefits allow us to invest in our workforce and expand commuting options.”
“With a commitment to making transit more affordable, we’re pleased to work alongside our municipal partners and our elected officials like Congressman Auchincloss on the tremendous benefits that public transportation offers to employers, employees, and the greater Boston community as a whole,” said MBTA General Manager and CEO Phillip Eng. “We’re grateful for all support in promoting public transit and thank Congressman Auchincloss for introducing this bill.”
“This bill sets the stage for employers to guide employees toward a shift from driving to more sustainable modes of transportation,”said David Straus, Association for Commuter Transportation Executive Director. “Through the provision of commuter benefits, organizations can deliver more affordable travel to and from work sites, saving employees money and creating more sustainable communities. Restoring this tax deductibility will encourage more employers to offer these valuable benefits."
"The Supporting Transit Commutes Act is an important tool for encouraging employers and workers to use public transit," said Transport Workers Union International President John Samuelsen. "It's common sense that ridership goes up when employers provide more transit benefits and this bill incentivizes employers to do it."
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.