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Commuters, such as these people leaving a VRE train at the Fredericksburg station yesterday afternoon, |
By KELLY HANNON
Fredericksburg-area commuters could get a free ride to work, thanks to the federal economic stimulus package.
The pre-tax benefit for commuters who ride a bus, train or vanpool to work is increasing to $230 a month starting Sunday, March 1.
The current pre-tax limit is $120 a month.
The new ceiling nearly doubles the maximum amount a federal agency or private employer can give to an employee to spend on bus, train and vanpool rides to work every month.
Some employers choose to give workers extra money to offset the cost of their commute. Other employers do not provide a subsidy, but allow workers to purchase bus, train or vanpool tickets with pre-tax income. In other cases, employers provide less than the maximum subsidy, perhaps $100 a month, and employees can use pre-tax income to make up the difference. The value of all these options will now rise to $230 a month.
The higher figure will remain in place until Jan. 1, 2011.
"I think it's an amazing incentive," said Diana Utz, director of GW RideConnect. "It's wonderful."
Many federal agencies currently provide the maximum allowable subsidy of $120 a month. If agencies provide the new maximum of $230 a month, it could make riding a vanpool or bus free.
The average cost of vanpool
Dale Zehner, Virginia Railway Express chief executive officer, told the VRE Operations Board last week he thinks the benefit change will increase ridership.
On the Fredericksburg Line, a rider with a full $230 subsidy could buy a $270 monthly pass from Fredericksburg to Union Station and L'Enfant Plaza for $40.
Riders traveling shorter distances on VRE would pay even less. A rider traveling from Brooke and Leeland Road in Stafford County to Crystal City or Alexandria would pay $7.30 a month.
Utz and GW RideConnect match commuters with carpool, vanpool and transit options to their work destinations, a free government service to Fredericksburg-area residents.
She cautioned that workers should check with their employer to see what their individual benefit will be after March 1.
"It doesn't mean you may automatically get $230," Utz said. "It's up to $230. That's the cap on being able to get that pre-tax benefit."
But even if an employer does not provide a subsidy, workers can inquire about getting bus, rail and vanpool tickets through pre-tax income, Utz said.
In the Washington area, employers must register with a program called SmartBenefits, which processes ticket requests. SmartBenefits launched on Dec. 1, 2008, taking over a former program known as Metrochek.
There are 400 federal agencies and 4,000 private employers participating in SmartBenefits, said Cathy Asato, Metro spokeswoman.
Utz said the benefit change is a strong incentive to encourage ridesharing.
"This is a major step in the right direction for commuters, for clean air, for congestion," Utz said.
Kelly Hannon: 540/374-5436
Email: khannon@freelancestar.com
| $230
New maximum monthly commuter subsidy, effective March 1 $120 Previous maximum monthly commuter subsidy 400 Number of federal agencies participating in the subsidy program 4,000 Number of private employers participating in the program |
