Analyzing the Effectiveness of Commuter Benefits Programs (2005) / Chapter Skim
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The federal tax code allows employers to provide to employees tax-free transit and vanpool benefits, often referred to as "commuter benefits." By lowering the cost of riding on transit and in vanpools for employees, commuter benefits should increase transit and vanpool ridership and reduce personal vehicle use. Commuter benefits programs are also believed to be advantageous for transit agencies because they increase ridership and/or revenues while potentially lowering costs associated with cash handling and individual fare transactions.
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This report is designed to be a companion to TCRP Report 87: Strategies for Increasing the Effectiveness of Commuter Benefits Programs (1)
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3approaches that can meet different goals. Transit agencies should examine their goals and objectives in determining which type of program and which activities would best meet their needs.
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transit ridership more than doubled. In some circumstances, however, no increases in transit use were found, suggesting that the programs only served existing transit riders.
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5• Transit benefits programs increase ridership but may be revenue neutral. Paired with the survey data, the information on transit benefits users suggests that transit benefits programs can increase systemwide ridership.
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