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ET-2010-01(Revised) Transit Benefit Program Guidance regarding the statutory tax-free limit of $230.

TRANSIT BENEFIT PROGRAM BULLETIN

Bulletin No.:  ET-2010-01(Revised)

Date:  October 22, 2010     

 
SUBJECT:  Transit Benefit Program Guidance regarding the statutory tax-free limit of $230.

PURPOSE:  This Bulletin provides updated guidance on the Department of Transportation (DOT) Transit Benefit Program.

BACKGROUND:  As of January 1, 2009, the maximum tax-free transit benefit for federal employees who use mass transit and/or qualified vanpools was $120 per calendar month.  Under provisions of Executive Order 13150, Federal Workforce Transportation, dated April 22, 2000, federal agencies are required to provide qualified employees the maximum benefit consistent with the requirements of the Internal Revenue Service (IRS) regulations.

On February 17, 2009, The American Recovery and Reinvestment Act (ARRA) of 2009, H.R. 1, Section 1151, Increased Exclusion Amount for Commuter Transit Benefits and Transit Passes, increased the tax-free transit benefit statutory limit to $230 effective March 2009.  January 1, 2011 is the sunset date for the increased benefit.

The link where you can obtain a copy of this document is: http://www.govtrack.us/congress/billtext.xpd?bill=h111-1

INFORMATION: Per guidance issued by the Office of Management and Budget (OMB) dated April 3, 2009 (Updated Implementing Guidance for the American Recovery and Reinvestment Act of 2009), the sunset date for the increase is January 1, 2011.

We want to alert your agency to this because there may be issues with the January fare media if Congress has not made a decision to sign a law extending the use of the statutory tax-free limit above $120 until after fare media is distributed or after it is too late to order fare media for a larger amount.  Many agencies receive their benefit for January in October or November.

Our goal is to deliver exceptional performance-based results that meet or exceed our customer needs and we regret any inconvenience this may cause.  We will send updated Bulletins to keep you informed.  Your Transit Benefit Manager will be getting in touch with you to discuss distribution options.   

EXPIRATION DATE:  This Bulletin will remain in effect until canceled.

Updated: Friday, March 3, 2017
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