In the U.S., three-quarters of all trips made to and from work are in single-passenger vehicles.

TransitChek News & Updates
April 2009
Volume 2 Issue 1

Letter From The President

I am pleased to report that after many years of supporting the issue of equal tax-free savings between driving commuters and transit commuters, we have finally succeeded. With the signing of the American Reinvestment and Recovery Act on February 17^th, the new transit cap increased to $230, on par with the parking benefit.

This special issue of TransitCenter News details the significant impact of this landmark change in the transit benefit and how it will help both participating individuals and businesses save money in the coming months.

As a company that offers TransitChek, we hope that your employees take full advantage of the added savings potential, whether you use the $230 to cover the cost of all or most of your commute or pass the savings on to friends and family members.

As part of our mission, we’ll continue to find ways that commuter benefits can bring greater value to organizations, their employees and the greater public.

Sincerely,

Larry Filler, President and CEO

TransitCenter Applauds Parity for Transit and Parking Benefits

The American Reinvestment and Recovery Act, signed into law by President Obama on February 17, included legislation that had a significant impact on commuter benefits. For the first time, the deduction limit for commuting costs has been raised to match the parking limit at $230 per month, allowing commuters to save up to an additional $1,000 per year.

TransitCenter has encouraged parity between the transit and parking caps for several years, and applauds this much-needed amendment to IRS code 132(f). The new cap marks a major victory for commuters, particularly those looking for new ways to save in the currently turbulent economy. TransitCenter congratulates the Senate and extends gratitude to Senator Charles Schumer and Congressman James McGovern, who initiated the legislation.

For more information, go to our press release here.

Be sure to visit www.exercisetheright.com for more information on commuter benefits.

The Impact of the New Transit Benefit Cap

Impact for Employees

A commuter spending at least $230 on their monthly transit commute may now save up to $1,000 or more annually, which can mean a lot for many people -- a mortgage payment, groceries and other household expenses.
Even for employees whose commuting costs are not as high, there is an opportunity to save, by purchasing transit passes for a spouse or a child who may be using mass transit to get around. These days, people are trying to find ways to save wherever they can.

Impact for Employers

Employers will benefit as well. Companies offering the benefit can save up to an additional $100 per employee per year in payroll taxes for those employees that spend $230 or more on their monthly transit commute.
40% of employers currently offer a commuter benefits program - 30% of employers said they would offer commuter benefits if the transit cap increased - 2008 Commuter Impact Survey
More than half of employees surveyed said they would participate in a commuter benefits program if their company offered one. This can translate into higher enrollment rates - and thus more savings - for organizations that choose to adopt a program like TransitChek. -- BusinessWeek Research+TransitCenter Survey 2008

Higher Transit Cap Means More Can Save

Good news for families with two or more commuters using transit: the TransitChek transit benefit can be shared, which means more savings for everyone.

So if one person participates in the TransitChek commuter benefits program and has commuting costs under $230, he or she can increase his or her monthly tax-free contributions to the program and use the extra money to pay for the commute of a spouse or child who uses transit on a monthly basis. Now that the transit limit is $230 a month, a family could save as much as $1,000 a year or more.

For more information about sharing the benefit and free posters to let employees know, visit www.exercisetheright.com or email us at tcnews@transitcenter.com.

TransitChek Order Form Updated

The TransitChek Order Forms have been updated with new denominations for employees to take advantage of the new transit cap.

Below is a list of the NEW denominations that have been added:

TransitChek® Voucher: $45, $75 and $100
TransitChek® Card: $110, $125, $150, $175, $200, and $230

Transit Ridership Hits 53-Year High in 2008

According to the American Public Transportation Association (APTA), Americans took 10.7 billion trips using mass transportation in 2008, a 4% rise from 2007's totals and the highest level of ridership in 52 years. APTA cited increased gas prices and the economic downturn as factors in the increase, and noted that increases occurred in each quarter of the year.

APTA's research showed that light rail use increased by 8.3%, paratransit increased by 5.9%, commuter rail increased by 4.7%, bus service increased by 3.9%, and subway ridership increased by 3.5% in 2008.

Plus, as Americans used transit more frequently, they drove less; the U.S. Transportation Department reported that highway travel decreased by 108 billion miles in 2008.

However, the MTA reported the first decline in subway use in three years for January 2009, a 2% drop to 4.9 million, citing the troubled economy and increasing unemployment as a cause. Subway ridership increased in 2008 by 3.9 percent to 1.62 billion, the highest since 1950, although the trend slowed late in the year as the economy declined.

New Look for TransitChek^® MetroCard^®

Over the last year, TransitCenter and TransitChek have been working on a new branding effort. As part of that effort, we have updated the look of the Premium TransitChek^® MetroCard^® and Unlimited and Pay-Per-Ride TransitChek^® MetroCard^® for the New York Metro area.

Both Cards will be available by June 1. Stay tuned for a new look for the TransitChek Voucher!