Congress Passes Tax Extension Legislation
Legislation Includes Provision to Retroactively Extend Parity for 2014 - No Impact on 2015
The 113th Congress closed on December 16, 2014, but not before the Senate cleared legislation that extends more than fifty tax provisions that expired at the end of 2013. The action Congress has taken retroactively extends these provisions for 2014, but does not extend them into 2015. Included in this legislation is a provision that retroactively extends the transit benefit for 2014. As a result, the transit/vanpool benefit for 2014 will retroactively increase from $130/month to $250/month.
The provision will have little impact on commuters, as employees are only able to take advantage of the provision if their employer withheld above the monthly caps. ACT member and transit benefit provider Edenred has provided a primer that explains retroactive transit benefits (PDF).
"ACT is disappointed that Congress was unable to come to an agreement that would provide certainty for millions of commuters," said ACT Executive Director Mark Wright. "Retroactive action does nothing to promote transportation options and provides confusion and administrative headaches. However, we appreciate the efforts made at the end of the 113th Congress and are encouraged by the bipartisan action and support that has been taken to date. We look forward to continuing to work with Congress and hope to find a solution early in the new Congress."