Reintroduced: Bipartisan Bill to Boost Transit, Commuter Benefits

U.S. Reps. Jake Auchincloss (D-Mass.; pictured, left) and Mike Lawler (R-N.Y.). (U.S. Government Photographs)

U.S. Reps. Jake Auchincloss (D-Mass.) and Mike Lawler (R-N.Y.) this month reported the reintroduction of the Supporting Transit Commutes Act (STCA), which they said would boost transit ridership by “incentivizing companies to offer commuter benefits for employees.”

Rep. Jim McGovern (D-Mass.) and former Reps. Marcus J. Molinaro (R-N.Y.) and Earl Blumenauer (D-Ore.) were original co-sponsors of STCA (H.R. 9464), which was introduced in the House last fall. The bill allows full deductibility for transit subsidies, encouraging employers to offer subsidies instead of pre-tax benefits, and includes provisions that if an employer offers only a pre-tax option, they are eligible to deduct 50% of the amount withheld, according to Auchincloss and Lawler.

“Prior to 2018, employers did not pay corporate or payroll taxes on transit benefits,” they said. “The 2018 tax law requires employers to be taxed for providing their employees with transit benefits. Federal policy should empower employers to provide their employees with affordable transit options and get cars off the road.”

“Investments in transit and walkability make for cleaner, more vibrant downtowns and better commutes for riders,” Rep. Auchincloss noted. “The goal of the Supporting Transit Commutes Act is simple: increase transit ridership. Legislation like this can help kickstart a virtuous cycle of more riders, reduced traffic, and enhanced investment in walkable downtowns.”

“The Supporting Transit Commutes Act will help employers provide critical transit benefits, reducing costs for commuters and making it easier for families in my district and across the country to get by,” added Rep. Lawler.

“Transit subsidies are a transformative commuter benefit that improves access to jobs and removes barriers to sustainable transportation,” said David Straus, Executive Director of the Association for Commuter Transportation, one of six organizations endorsing STCA. “When employers offer them, it’s a win for workers and a win for our communities’ mobility. Our workforce, businesses, and environment all stand to gain if tax deductibility is restored.”

“Tax incentives like those highlighted by the Supporting Transit Commutes Act are vital to public transit agencies of all sizes as they support one of transit’s key benefits: taking people to work,” Community Transportation Association of America Executive Director Scott Bogren said. “The incentives also lead to important partnerships between employers and transit agencies at the local level.”

“The Transport Workers Union strongly supports the reintroduction of the Supporting Transit Commutes Act,” TWU International President John Samuelsen said. “Restoring the employer deductibility is an important tool for encouraging workers to use public transit. Ridership will increase and vehicular congestion will decrease under this bill.”

The bill is also endorsed by the Amalgamated Transit Union, National Association of Counties, and Society for Human Resource Management.