Green Routes to Work

Recently a bill has been introduced to Congress, HR 3271, better known as “Green Routes to Work.” What this bill does is incentivize alternative commuting programs by providing tax cuts and breaks for employers that offer specific programs designed to reduce Single Occupancy Vehicle (one person in one car) commutes. The Association for Commuter Transportation states that the bill will:

• make permanent the $230 the tax exclusion for both vanpool & transit; also knows as the transit benefit and parking fringe benefits;
• make self-employed individuals eligible for transit pass fringe benefits;
• include employer-established parking cash-out programs as a qualified transportation fringe benefit;
• establish a 10% vanpool investment tax credit
• establish a tax credit for subsidizing tax-free transit passes to employees;
• allow a general business tax credit for expenditures to improve access for bicycle commuters;
• allow employees to receive transit passes and reimbursements of bicycle commuting expenses as tax exempt
• employer-provided fringe benefits in the same month;
• allow an employer's election to expense the cost of removing architectural and transportation barriers
• to bicycle commuter access to employer facilities; and
• allow a tax credit for teleworking expenses, up to $400 per year.

What does this mean for the employer? If this this bill becomes law, it will provide an incentive for employers to be more engaged with employees’ commutes. Studies have shown that employees that commute by means other than Single Occupancy Vehicles are happier and more productive during the work day. Employers that treat the commute to work as a priority will ultimately have a happier and more productive workforce. This bill is currently before the House for debate, and has not been signed into law.

Posted by Shayne Trimbell, GVF Project Manager

Posted in: transit