By Bill Holloway
The fiscal cliff deal signed by President Obama on January 2nd will make it cheaper to use transit in 2013 for many workers. The deal includes a provision raising the maximum monthly pre-tax benefit that employers can offer their employees for using transit, from the current $125 a month to $240 a month. As reported by Transportation Issues Daily, this change brings allowable pre-tax transit benefits into alignment with the limits on employer-provided parking benefits for employees. However, while the limits on pre-tax parking benefits are ongoing, the increased limit on transit benefits will expire at the end of this year.
Bill Holloway is a Transportation Policy Analyst at SSTI.