Bay Area Commuter Benefits Program Options
| Options | Description |
|---|---|
| Option 1: | Pre-Tax Benefit Allow employees to exclude their transit or vanpool costs from taxable income, to the maximum amount, as allowed by federal law (currently $340 per month). |
| Option 2: | Employer-Provided Subsidy An employer-provided monthly subsidy of up to $75 to cover vanpool fare or transit costs. If the employee's monthly vanpool or transit fare is less than $75 each month, the employer will cover the full amount of the fare; if the fare exceeds $75, the employer must offer the full $75 subsidy to the employee. Employers may elect to offer a higher than $75 subsidy at their discretion. |
| Option 3: | Employer-Provided Transit Employer-provided free or low cost bus, shuttle or vanpool service operated by or for the employer. |
| Option 4: | Alternative Commuter Benefit An alternative employer-provided commuter benefit that is as effective as in reducing single occupant vehicles as Options 1-3. One example of a combination of alternative benefits includes providing parking cash-out, secure, on-site bicycle parking and an emergency/guaranteed ride home program. |
| Option 5: | Telework A company-wide telework policy allowing telework one or more days a week for all employees whose assignments can be performed remotely. |
In order for an employer to be pre-approved to comply under Option 5: Telework, the employer must not remove existing benefits being offered to employees whose duties cannot be done outside of the worksite. If an employer removes existing commuter benefits already being offered to employees, then Option 5: Telework will need to be approved by the Air District on a case-by-case basis.
For information on commuter benefits provided by your organization, contact your Human Resource Administrator. Note: Bay Area Commuter Benefits is not a benefit provider.
Bay Area Commuter Benefits Program Updates
Our new registration site for employers is live!
Feel free to reach out with any questions or feedback by sending us an email at commuterbenefits@511.org or by calling us at (510) 285-3182.
What's New
- California’s Parking Cash-Out law requires employers with 50 or more employees who provide a parking subsidy to also offer a cash allowance to employees instead of parking space. Read more at the California Air Resources Board website.
- The new pre-tax limit for the 2026 tax year is $340 for transit, vanpools and qualified monthly parking. Find details in the Read more in the IRS Employer's Tax Guide to Fringe Benefits.
Latest Advisories & Reports
- Telework (Option 5) Advisory issue by the Bay Area Air District.
Read more in the Bay Area Air Quality Management District Compliance Advisory(PDF file opens in a new window). Compliance Advisory issued by the Bay Area Air District.
Read more in the Bay Area Air Quality Management
District Compliance Advisory(PDF file opens in a new window).
- Learn more about the impact of the Bay Area Commuter Benefits Program in the full Report to the California Legislature, prepared by MTC and the Air District following the Program’s pilot phase.
The Bay Area Commuter Benefits Program is a partnership of the Metropolitan Transportation Commission, managing employer outreach for the Program, and the Bay Area Air Quality Management District, developer of Regulation 14, Rule 1: Bay Area Commuter Benefits Program and managing compliance for the Program.