Law Makes Tax Breaks Equal for Parking & Transit Benefits

2016 tax-exclusion cap raised for mass-transit benefits; parity made retroactive for 2015

On December 18, 2015, the Consolidated Appropriations Act of 2016 was signed into law. Included was a permanent reinstatement of parity in transit and parking benefits. What this means is that effective on January 1, 2016, the monthly max tax exclusion for transit and parking plans will match: it will be $255. This is a $125 increase for qualified transit plans.

The provision also retroactively reinstated the parity for 2015. The monthly limit for 2015 transit plans changed from $130 to $250, retroactive to January 1, 2015.