A newly reintroduced House bill aims to restore tax deductions for employer-provided transportation benefits. The initiative encourages businesses to support commuter expenses while reducing financial burdens. This was reported by the railway transport news portal Railway Supply.

A newly reintroduced House bill aims to restore tax deductions for employer-provided transportation benefits.
A New York-bound Long Island Rail Road train approaches the Floral Park station. A House bill seeks to reestablish employeer tax deductions for transit benefits. David Lassen

House Bill Seeks to Boost Employer Transit Benefits

The Supporting Transit Commutes Act, introduced in January, has bipartisan support from two U.S. representatives. This proposal follows a previous version from last year, which failed to pass committee review.

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Under the bill, employers providing transit subsidies will qualify for full tax deductions. Companies offering only pre-tax benefits would receive a 50% deduction on withheld amounts.

Congressman Mike Lawler emphasized the bill’s role in reducing commuting costs for working families. His co-sponsor, Jake Auchincloss, highlighted its potential to boost transit ridership significantly.

How the House Bill Supports Public Transit Growth?

“This measure will assist businesses in supporting employees’ transit needs and lowering travel expenses,” Lawler said. Auchincloss added, “Strengthening public transit fosters economic growth, reduces traffic, and revitalizes downtown areas.”

Advocates believe these incentives could initiate a cycle of increasing transit usage and infrastructure investment. The legislation aims to create sustainable urban development while benefiting commuters nationwide.

Source: www.trains.com

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