FareShare Program Reimburses Montgomery County Employees For Commuting Costs

MONTGOMERY COUNTY, MD — Commuters working in Montgomery County can get reimbursed for up to $280 a month for using public transit or vanpooling by asking their employers to set up a transportation benefits program.

The “FareShare” program of the Montgomery County Department of Transportation offers reimbursements to local businesses for their employees’ commuting-to-work costs by public transit and the money is tax-free.

In addition to vanpools, the program could cover expenses incurred by commuters using Ride On bus, Metrobus, Metrorail or MARC train to commute to and from a workplace within Montgomery County.

Businesses looking to implement or expand a transportation benefit program must commit to covering the first $25 per month of travel costs for employees who use buses or vanpools. The county will cover expenses over the initial $25, up to $280 a month. The full subsidy could be as high as $3,360 per year, per employee. It is tax-free to both the employee and the employer.

There is a maximum payout of $40,000 to each business per year. The reimbursements can be a direct benefit, a pre-tax payroll deduction or a combination of both. MCDOT Commuter Services staff offers free assistance in setting up a commuter benefits program that is tailored to a business’ needs.

Participating employers also are eligible for a state tax credit of 50 percent of their $25 contribution per employee each month. This credit is available to both for-profit and nonprofit organizations.