Commuter Choice refers to recent changes in the Internal Revenue Code 26 USC 132(f), which permits you to offer your employees a tax-free benefit to commute to work by methods other than driving alone.
What is the Maryland Commuter Tax Credit?
Maryland-based businesses can receive a tax credit of 50% of a $100 benefit for providing eligible commuter expenses for their employees. The maximum value of the tax credit is $50.00 per month, per employee. Any combination of benefits can be used, and employers can take this credit against the State Income Tax, the Financial Institution Tax, or the Insurance Premium Tax. These employer-provided commuting expenses qualify for the tax credit:
Vanpools, seating eight or more adults, and provided by the employer. Van purchase and leases, fuel, insurance, safety, and equal-access upgrades can qualify for the tax credit if paid directly by the employer.
Visit Maryland Commuter Tax Credit for more information.
Federal Tax Considerations
For more information, contact Anne Kaiser at email@example.com or 301-656-0868 x 129.