COMMUTER BENEFIT PLAN (CBP) FAQs
Qualified Parking
What parking expenses are eligible to be paid under a Commuter Benefit Plan (CBP)?
How much can I set aside in a Parking Account on a tax-free basis each month?
What parking expenses are eligible to be paid under a CBP Plan?
Expenses for parking are eligible to be paid under a CBP if they are provided to the employee on or near the business premises of the employer or on or near a location from which the employee commutes to work by car pool, in a commuter highway vehicle, on mass transit facilities or on transportation provided by any person in the business of transporting persons for compensation or hire in a commuter highway vehicle. It does not include any parking on or near the property used by the employee for residential purposes. It also does not include expenses for anyone other than the employee.
Note that a commuter highway vehicle means any highway vehicle with a seating capacity of at least six (6) adults (excluding the driver); and of which at least eighty percent (80%) of the mileage for a year is reasonably expected to be used:
| • | for purposes of transporting employees in connection with travel between their residences and their places of employment; and |
| • | on trips during which the number of employees transported for such purposes is at least one-half (1/2) of the adult seating capacity of such vehicle (excluding the driver). |
How much can I set aside in a Parking Account on a tax free basis each month?
Your maximum tax-free election for qualified parking expenses, as set by the IRS, is:
| • | from January 1 - December 31, 2011: $230/month |
| • | beginning January 1, 2012: $240/month |