WASHINGTON — Count commuters among the losers in the Republican tax bill that the House and Senate are expected to vote on next week.
The final bill agreed to by Republican negotiators and released late Friday eliminates the tax incentive for private employers that subsidize their employees’ transit, parking and bicycle commuting expenses.
Currently, companies can provide parking or transit passes worth up to $255 a month to employees as a benefit to help pay for their commuting expenses, and then deduct the costs from their corporate taxes. That amount was set to increase to $260 a month on Jan. 1.
The reasoning behind the elimination of the deduction is that since the tax bill substantially lowers the corporate tax rate, smaller tax breaks that complicate the tax code are no longer necessary.