Earlier this year, federal employees who use mass transit to commute to work got some extra money in their pockets. After many years of ups and downs, and a long fight by NTEU, the federal transit benefit was increased to match the parking benefit. And it's going to stay that way.
If you use mass transit to commute to work, you got some very good news earlier this year. Not only was the federal subsidy for transit and parking the same, but this hard-fought parity is now a permanent part of the tax code. For this year, both tax breaks are capped at $255 a month.
NTEU has fought for transit-parking parity for years, but it was always a tough sell in Congress. Lawmakers invariably kept the transit benefit far smaller than the parking benefit. For instance, in 2015, the pre-tax transit benefit was capped at $130 a month whereas the monthly tax break for parking was nearly twice as high—up to $250 a month.
A tax-extenders bill that Congress passed last December did two things—it equalized the two benefit level and made the parity permanent.
That’s a dual victory for NTEU. First, this means NTEU no longer has to fight for parity or for parity permanence year after year on Capitol Hill, freeing up time and resources for other priorities important for the federal workforce.
Second, an enhanced transit benefit would entice more federal employees to leave their vehicles at home. That’s a win for the environment because of reduced traffic congestion and less pollution.