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1. What modes of transportation qualify for tax savings?

Transit and vanpools qualify under the tax-exempt program.

2. How do I get start a tax-exempt transportation program?

It's easy! If you provide transit passes or vanpools to your employees, just keep your receipts of purchase and a list of pass recipients and vanpool users. There is no additional paperwork involved. You don't have to file a plan and the IRS does not have to approve your program. You can start your program at any time of the year and can make it as formal or informal as you like. For details or to make sure you are in compliance, consult your corporate accountant or tax attorney.

3. How do I take advantage of the commuter tax benefit?

Offer free bus passes or vanpool services to employees as an additional benefit.

Offer pre-tax payroll deductions and let the employees purchase bus passes or pay vanpool fares themselves.

Share the benefit and split the cost. You pay half the cost of the bus passes or vanpool fares and your employees pay the other half using pre-tax income.

For additional information, please visit the Commuter Choice website.