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Dear Congressman Grimm:
On behalf of the American Public Transportation Association (APTA) and its more than 1,500 member organizations, I thank you for introducing H.R. 2288, The Commuter Parity Act of 2013 which would create permanent parity between public transportation and parking fringe benefits.
As you know, current law provides equal tax treatment for transit and parking benefits, but that law expires at the end of this calendar year. Once the current law expires, transit tax benefits will revert to roughly half of the tax benefit for parking – creating a tremendous inequity. The timely passage of H.R. 2288 would prevent this and permanently establish equal treatment within our tax code for commuting transit riders and drivers.
Currently, 2.7 million people utilize transit tax benefits to help reduce their public transportation costs commuting to and from work. The transit fringe benefit not only assists transit riding workers but also supports employers – including many small businesses. By offering pre-tax transit benefits to employees, employers realize savings from reduced payroll taxes. Transit benefits are also a valuable employee recruitment and retention tool.
Again, I thank you for your leadership in supporting public transportation and American workers. If you have questions, please have your staff contact Brian Tynan of APTA's Government Affairs Department at (202) 496-4897 or email email@example.com.