The Green Routes to Work Act (HR. 3271)

Introduced July 21,  2009, by Representative Earl Blumenauer (D) of Oregon’s 3rd District, the Green  Routes to Work Act (HR. 3271) aims to incentivize workers to commute by  modes other than single-occupancy vehicles – including public transit, bicycle  and vanpools – through adjustments to existing federal tax exemptions and  deductions for commuting. At the time of writing, the bill has been referred to  the House Committees on Ways and Means and Oversight and Government Reform.

The Green Routes to Work  Act would increase the tax exemption for workers’ public transportation and  vanpool costs from $100 to $230 per month, and increase the exemption for  workers’ parking costs from $175 to $230 per month. The bill would also require  employers who offer parking cost tax exemptions to their employees to give them  the option of receiving a monthly cash payout equal to the sum paid by the  employer for parking for a single employee. This is intended to create an  incentive for employees to take alternative forms of transportation to work.  Recognizing that many commuters use more than one mode of transportation – for  instance, biking and public transit, or public transit and van pool – the bill  would permit workers to split their fringe benefits among different modes, up to  the $230 cap.

Employers, too, would  benefit from incentives for alternative commuting. They would receive a tax  credit of up to 10 percent of their public transit expenditures on the employee  transportation fringe benefits program. In addition, the bill would create two  tax incentives encouraging employers to foster bike-friendly workplaces. Lastly,  the bill would encourage telecommuting by creating a tax credit (up to $400 per  year) to offset employers' or employees' purchase of telecommunications  equipment and services.