There’s good news for train, subway and van pool riders hidden in the 157-page fiscal cliff deal—an extension of pre-tax benefits for transit commuters on par with parking benefits. That means $550 and up a year in tax savings per commuter, retroactive to 2012. An estimated 2.7 million families (mine included) will gain from this break.
“It’s significant pocketbook relief,” says Steven Higashide, federal advocate for the Tri-State Transportation Campaign, a watchdog group that advocates for environmentally sustainable transportation for hundreds of thousands of commuters in New York, New Jersey, and Connecticut. “Not having parity between transit and parking is completely backwards, and it’s great news that Congress has fixed this [through 2013],” Higashide says, adding, “We certainly shouldn’t be encouraging driving over public transit through the tax code.” [Read More]