Brought to you by MTC and the Bay Area Air Quality Management District, the Bay Area Commuter Benefits Program takes advantage of the federal tax code to provide incentives for riding transit or vanpooling to work.
To reduce both traffic congestion and greenhouse gas emissions, the program requires Bay Area employers with 50 or more full-time employees to offer one of four commuter benefit options to their workers:
- Pre-tax benefit — allow employees to exclude from taxable income up to $130 of transit or vanpool expenses each month. This can save both employees and employers money through lower Social Security and Medicare payroll taxes
- Employer subsidy — provide up to $75 each month to reduce or cover employees’ transit or vanpool costs
- Employer-provided transit — provide a free or low-cost transit service (bus, shuttle or vanpool) for employees
- Alternative benefit — provide another commuter benefit that is equally effective in reducing single-occupant commute trips as options 1, 2 or 3
Employer Assistance Available
MTC offers assistance to help employers implement the Commuter Benefits Program.
Just call 511 and say ‘Commuter Benefits’ at the first prompt. Or visit the Commuter Benefits Program page on 511.org.
State law authorizes MTC and the Air District to implement the Bay Area Commuter Benefits Program on a pilot basis through 2016.
MTC and the Air District modeled the Bay Area Commuter Benefits Program on commuter benefits ordinances previously established in San Francisco, Berkeley and Richmond, as well as at San Francisco International Airport.
The Bay Area Commuter Benefits Program allows commuters to save as much as 40 percent on monthly transit or vanpool costs when they choose the pre-tax benefit option.