Per IRS regulations, a vanpool refers to a commuter highway vehicle, which is any highway vehicle with:
- A seating capacity of at least six (6) adults (excluding the driver)
- 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
- 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)
Note that at this time, the updated UberX Share and Lyft Share Rides programs no longer meet the IRS requirements for a Commuter Benefit Plan and are no longer eligible expenses.