Qualified Transportation Fringe Benefit Rates for 2009 - Update

Qualified Transportation Fringe Benefit Rates for 2009 - Update

Employers may provide workers with up to $230 per month in tax-free transit and vanpool benefits in 2009. Effective March 2009, as part of the stimulus bill, the monthly limitation under Section 132(f)(2)(A) Qualified Transportation Fringe Benefits regarding the aggregate fringe benefit exclusion amount for vanpools (commuter highway vehicles) and transit passes was increased from $120 to $230 per month. The monthly limitation under Section 132(f)(2)(B) regarding the fringe benefit exclusion amount for qualified parking is $230. Commuters can receive both the transit and parking benefits (i.e., up to $460 per month). Employers can allow employees to use pretax dollars to pay for transit passes, vanpool fares and parking.

Beginning in 2009, employees can be reimbursed up to $20 per month for biking to work. The Emergency Economic Stabilization Act of 2008 (P.L. 110 343), added qualified bicycle commuting reimbursements to the types of qualified transportation fringe benefits. The benefit can not be combined with those other qualified transportation fringe benefits.