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RideECO's Employer Tools have now been updated to reflect the 2016 monthly cap of $255. Please visit the RideECO Employer Tool tab at top. In this section, you will find the following documents:
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Last week, Congress passed and the President signed the Consolidated Appropriations Act of 2016. This bill includes a provision that increases the monthly cap on RideECO to $255 for 2016 on January 1, 2016 and retroactively increases the cap for 2015 to $250/month.
What does this mean? Commuters who are buying monthly SEPTA passes of Zone 2 or greater or NJ Transit passes of Zone 3 or greater now can have 100% of their pass cost covered by the RideECO benefit. Until now, the cap was $130/month, requiring commuters to use post-tax dollars to make up the difference of fares. This increase in the cap allows employees who are taking the maximum allowed to realize an annual savings of nearly $1,000. In addition, employers can expect annual savings of more than $230 per employee, per year. Can we expect this legislation to expire? No. The legislation allows for permanent parity between transit, vanpool and parking benefits at $255. What about retroactivity? The legislation included a clause that allows for retroactive commuter benefits for 2015 at $250. If the employer withheld post-tax deductions above $130 or provided an employer-paid subsidy greater than $130, the employer will be able to retroactively apply the $250/month cap for 2015. The IRS previously provided this guidance regarding retroactive commuter benefits. We encourage you to speak with a licensed accountant or tax attorney regarding specific questions regarding the tax implications of this new legislation. The IRS released annual inflation updates for a number of tax provisions for the 2016 tax year. The RideECO Commuter Benefit remains at $130/month for the next year (see page 14 for details). A complete list of 2016 updates is available here or by downloading the pdf below.
The IRS released annual inflation updates for a number of tax provisions for the 2015 tax year. The RideECO Commuter Benefit remains at $130/month for the next year. A complete document of 2015 updates is available here.
From APTA's Passenger Transport Newsletter.
On April 2, Senate Finance Committee Chairman Ron Wyden (D-OR) and Ranking Member Orrin Hatch (R-UT) held a hearing to mark up the Expiring Provisions Improvement Reform and Efficiency (EXPIRE) Act. With bipartisan approval, the measure was successfully advanced and voted out of committee. The EXPIRE Act includes a two-year extension of both the transit commuter benefit and the alternative fuels tax credit. The EXPIRE Act would extend, through 2015, the previous increase in the monthly employer-provided transit and vanpool benefits. With the expiration of the transit commuter benefit on Dec. 31, 2013, the benefit dropped to $130 from $250. This legislation would restore it at $250, per month, at parity with the parking benefit, and make it retroactive to Jan. 1, 2014. The 50-cent-per-gallon alternative fuel tax credit and alternative fuel mixture tax credit would be extended through 2015. Of great importance to many APTA members, this credit can be claimed as a nonrefundable excise tax credit or a refundable income tax credit for the blending and sale of alternative fuel mixtures including compressed or liquefied natural gas, ethanol, biofuels, and liquefied hydrogen. More information is available under "Legislative Alerts" at the APTA website. |
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