Government Agencies
President Clinton signed Executive Order 13150, Federal Workforce Transportation, on April 21, 2000, establishing a mass transportation and vanpool transportation fringe benefit program for all qualified Federal Employees. Federal agencies were given until October 1, 2000 to implement a transportation fringe benefit program allowing employees commuting to work using mass transportation and vanpools to exclude a portion of their commuting costs from taxable wages and compensation. At the same time the Department of Transportation, the Environmental Protection Agency, and the Department of Energy where tasked with creating a nationwide three year pilot program to test the viability of a “transit pass” transportation fringe benefit program. These actions were taken in an effort to reduce single occupancy vehicle travel and local area traffic congestion.
Over the years, the maximum allowable transportation fringe benefit, also known as a “commute-to-work” benefit, has steadily increased. The recently enacted American Recovery and Reinvestment Act of 2009 included a provision which significantly increased the maximum tax-free Commute-to-Work benefit for commuters using mass transportation and vanpools to as much as $230 per month. Not surprisingly, employees of Federal Agencies and the Department of Defense are eager to take advantage of this exceptional employee benefit and have an active role in helping to reduce our nation’s dependence on foreign oil, traffic congestion and greenhouse gas emissions.
