Transportation Fringe Benefit Update 2011
10.6.2010
As you are aware, last year in the Federal stimulus package known as ARRA, language was included which temporarily established parity between the transit and parking portions of the transportation fringe benefit at $230/month. This provision is set to expire at the end of this calendar year. For Edenred it is a priority to make this provision permanent .
On September 23rd, Gerard Bridi, President of Edenred, joined
representatives from the commuter benefit industry leaders to discuss
extending the parity provision with top Congressional officials.
During these meetings, we learned that Congress does not anticipate
taking action on a tax bill before Congress adjourns for the elections.
Additionally, there is no clear plan as to when, or even if, a tax bill
will move after the mid-term elections. Essentially, if and when a tax
bill moves this Congress, there is a high priority that at least an
extension of parity will be included. However, the likelihood of a tax
bill moving through Congress is unknown at this time. At this point, we
are working with Congress to explore all options, and while we wish
there was a definitive answer to the question of whether or not parity
will be extended, the simple answer is right now, we still do not know
for sure.
If Congress fails to move on a tax bill and extend parity, the transit
and vanpool levels will drop back down to $120/month until action is
taken (cost of living adjustments is possible). We do not expect any
further change in the situation until after the elections and will keep
you updated as soon as new information is available.