D.C. Mun. Regs. tit. 7, r. 7-3301

Current through Register Vol. 71, No. 43, October 25, 2024

Rule 7-3301 - TRANSIT BENEFIT PROGRAMS

3301.1

Pursuant to Section 302 of the Sustainable DC Omnibus Amendment Act of 2014, effective December 17, 2014 (D.C. Law 20-142; D.C. Official Code § 32-152 (2012 Repl. & 2018 Supp.)), every covered employer must provide at least one (1) of the transportation benefit programs listed in paragraphs (a), (b), or (c) of this subsection, in compliance with Section 132(f) of Internal Revenue Service (IRS) Code ( 26 USC § 132(f)) , to each of its covered employees within ninety (90) calendar days after t he publication of this rulemaking or for new employees thereafter.

(a) An employee pre-tax election transportation fringe benefits program that provides employees the option of pre-tax payment for:

(1) Transportation in a commuter highway vehicle in connection with travel between the employee's residence and place of employment, at a benefit level equal to the maximum amount of such a fringe benefit that may be deducted from an employee's gross income under the Internal Revenue Code ( 26 USC § 132(f));

(2) A transit pass, at a benefit level equal to the maximum amount of such a fringe benefit that may be deducted from an employee's gross income in compliance with Section 132(f) of the Internal Revenue Code ( 26 USC § 132(f)); or

(3) Starting in 2026, bicycling benefits at a benefit level equal to the maximum amount of such a fringe benefit that may be deducted from an employee's gross income in compliance with Section 132(f) of the Internal Revenue Code ( 26 USC § 132(f)) .

(b) An employer-paid benefit program whereby the employer supplies, at the election of the employee, either a transit pass for the public transit system requested by the covered employee or reimbursement of vanpool or bicycling costs in an amount at least equal to the purchase price of a transit pass for an equivalent trip on a public transit system; or

(c) Employer-provided commuter transportation at no cost to covered employees in a shuttle, vanpool, or bus operated by or for the employer.

3301.2

Employer may provide both employer-paid benefit(s) and employee pre-tax election(s), but the total combined tax benefit shall not exceed the maximum benefit permitted under Section 132(f)(2) and (6) of the Internal Revenue Code ( 26 USC §§ 132(f)(2) and (6) ).

3301.3

Benefits provided under this section shall be provided in a manner consistent with the requirements of Section 132(f) of the Internal Revenue Code ( 26 USC § 132(f)) and its implementing regulations.

D.C. Mun. Regs. tit. 7, r. 7-3301

Final Rulemaking published at 65 DCR 10529 (8/16/2019)