On December 18, 2015, President Obama signed into law the Omnibus Appropriations and Tax Extender Package. Last week there was a lot of talk about how this law postponed the Cadillac Tax, but also included in the law was a change in the Commuter benefits. This has received much less attention.
Under this provision, there will be a permanent parity between transit and parking benefit cap levels assisting millions of employees who commute to work using public transportation.
Under the new provision, the monthly IRS cap on pre-tax commuter benefit deductions for 2016 will increase for both drivers and public transportation commuters from $250 and $130 respectively, to $255 for both modes of transportation.