Tax benefits for employer-based transportation programs
Tax benefits are available to help offset costs incurred by employers for commute benefits. Pre-tax accounts can save employees money on commute and parking expenses, and employers can receive tax benefits as well.
Washington State Tax Benefits
If your company is providing commute trip reduction incentives, it may be eligible to receive Washington's Commute Trip Reduction Tax Credit.
- Eligible companies and property managers (those paying business and occupation (B&O) or public utilities taxes (PUT)) can receive tax credits of up to 50% of the amount paid for each employee's transit, ridesharing, carsharing or non-motorized commuting.
- Up to $100,000 is available for each company and property manager per fiscal year.
- Tax credits have a cap of $60 per employee.
- Note: Am application must be submitted between January 1 and January 31 following the calendar year in which the applicant made the commute trip reduction incentive payments. The credit is available on a first-come, first-served basis while each year's funding lasts.
More information is available on the Washington State Department of Revenue's webpage.
Federal Tax Benefits
- Updates coming soon
Employers are also highly encouraged to consult a tax advisor for detailed information regarding the tax implications of commute benefits and incentives.