Employer Tax Incentives

What is the Maryland Commuter Tax Credit?

Maryland-based businesses can receive a tax credit of 50% of a $100 benefit for providing eligible commuter expenses for their employees. The maximum value of the tax credit is $50.00 per month, per employee. Any combination of benefits can be used, and employers can take this credit against the State Income Tax, the Financial Institution Tax, or the Insurance Premium Tax. These employer-provided commuting expenses qualify for the tax credit:

Metrorail, Metrobus, MARC, and Ride On transit passes, tokens, fare cards provided free or at a reduced cost.

Vanpools, seating eight or more adults, and provided by the employer. Van purchase and leases, fuel, insurance, safety, and equal-access upgrades can qualify for the tax credit if paid directly by the employer.

Contact Kristen Blackmon for more information at KBlackmon@bethesda.org or 301-656-0868 ext. 119.

Federal Tax Considerations

Visit the IRS's 2020 Employer Tax Guide for Fringe Benefits to learn more about the ruling on pre-tax benefits. Further information on the tax code is available on the IRS website.