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April 10, 2016

Federal Budget Provides Transit Parity

On Dec. 18, 2015, President Barack Obama signed a federal budget bill into law for 2016. This bill increased the maximum monthly tax exclusion for employer-provided mass transit benefits in order to make it equal to the limit for employer-provided qualified parking benefits. This increase provides permanent equivalence between mass transit and parking benefits, which is often referred to as “transit parity.” Transit parity means that the federal Internal Revenue Code no longer favors parking benefits over mass transit benefits. The increase applies retroactively to months after 2014