Supporting Transit Commutes Act

This bill lets employers claim a tax deduction when they help workers pay for commuting by transit pass or vanpool between home and work. The deduction is capped at the same monthly limit used for these benefits under current tax rules (for example, $325 per month per employee in 2025, with yearly adjustments). If the benefit is offered through a salary reduction (the employee chooses to take less pay to get the benefit), the employer can only deduct 50% of that amount.

Key points:

• Who is affected: Employers that provide transit passes or vanpool benefits; employees who commute by public transit or shared vans.
• What changes: Employers can deduct these commuting costs up to the monthly limit; only 50% is deductible if offered via salary reduction agreements.
• When: Applies to amounts paid or incurred after the law is enacted, in tax years ending after that date.