Transit Subsidy May Rebound

A Senate committee is set to consider this week a tax measure that among other things would restore the “public transit subsidy” to a higher level. A temporary boost in the payment expired at the end of 2013, causing the maximum monthly amount that an individual can receive tax-free to fall from $240 to $130. The measure before the Finance Committee would raise the amount to $250 a month, effective retroactive to the start of this year and carrying through 2015. Some agencies pay the subsidy directly to employees in the form of transit passes that can be used for public transportation or van pools, while some allow employees to have the maximum amount deducted from pay on a pre-tax basis.