By Jon Martz
VPSI’s Vice President, Government Relations

Jon Martz
You and many of your fellow vanpoolers have been fortunate to take advantage of the $230/month transit-vanpool benefit provided by Congress in the “Bush-Middle Class Tax Cuts.” In December of 2010, Congress extended this commute-to-work benefit for one additional year (continuing to match the monthly amount allowed for parking expenses).
Unless Congress acts within the next two months, the transit-vanpool portion of the commuter benefit will be reduced nearly in half to $120/month, effective January 1 2012.
The VPSI, Inc. staff is working closely with a coalition of public agencies, transit operators, private businesses, benefit providers and concerned citizens to support maintaining these commuter benefits. We encourage you to visit www.CommuterBenefitsWorkforUs.com to learn more about the efforts being made to maintain your commuter benefits at their present levels.
Please feel free to pass this message along to your fellow vanpoolers. I am sure they will be interested in the status of the legislation and other issues affecting their commute-to-work benefits.
By Jon Martz, Vice President of Government Relations

LATE BREAKING NEWS: At 4 pm EST on Friday, December 17th, U.S. President Barack Obama signed the bill which provided a two-year extension of the Bush/Middle class tax cuts and included in that bill is a provision extending parity between the transit/vanpool and parking portion of the transportation fringe benefit at a level of $230/month for additional 1-year.
In 2009, as a part of the American Recovery and Reinvestment Act (ARRA), the transit/vanpool tax benefit was increased from $120 per month to $230 per month – matching the amount allowed for parking expenses. That provision was set to expire at the end of this year (2010).
Yesterday, December 15th, the U.S. Senate overwhelmingly (81 Yea – 19 Nay) passed a sweeping tax package, which extends the “Bush-era tax rates” for two more years.
Of relevance to our customers, the bill extends through 2011 the increase in the monthly inclusion for employer provided transit and vanpool benefits, which equals the exclusion of employer-provided parking benefits (up to $230 per month).
It is expected the House will vote on the Senate bill today, Thursday, December 16th.
Vanpoolers affected by this legislation should contact their benefits administrator regarding any new procedures required to avail themselves of the continued benefit allowance.
Stay tuned. We will let you know of the vote in the House of Representatives, as soon as we know.