Transit Benefits

Public transit agencies across Maryland operate a wide network of services making local and regional trips. Depending on their location, riders may have access to bus routes, the metro, light rail, and even water taxis! Commuter programs may be tailored to provide resources for transit most relevant to their employees.

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Active Commuting

Active commuting includes walking, running, bicycling (including e-bikes), and using scooters as part of the trip to and from work. Supporting these options can improve employee health, reduce parking demand, and advance organizational sustainability goals.

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Carpool / Vanpool

Carpool and vanpool programs let employees share the ride, cut commute costs, and reduce drive-alone trips. Carpooling is two or more employees sharing a personal vehicle, with costs and driving shared within the group. Vanpooling uses a leased or employer-provided van or SUV, typically 4–15 commuters, including one or more of the group members who volunteer to drive.

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Telework / Flexwork

Telework allows employees to work remotely full-time, part-time, or occasionally, while flexwork includes options like compressed work weeks, flextime, and staggered work hours. These policies can increase productivity and job satisfaction, support recruitment and retention, and help manage office and parking demand.

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Maryland Commuter Tax Credit

The Maryland Commuter Tax Credit allows employers to save money when they help employees use cleaner, more affordable ways to get to work.

Maryland employers, including nonprofits, can claim a tax credit for 50% of eligible commuter benefit costs, up to a set monthly limit per employee. These benefits must be employer-funded and used for commuting to worksites in Maryland during typical weekday commuting hours.

The state credit is separate from, and can often be combined with, federal transportation fringe benefits, allowing employers to reduce state tax liability while employees save on commuting costs. Employers must register for the credit, track eligible expenses, and file the required Maryland tax forms each year to claim it.

Federal Fringe Benefit

The federal transportation fringe benefit lets employers and employees save on taxes by using tax-free dollars for commuting, reducing employees’ taxable income. Employers can provide this as a pre-tax benefit, a subsidy, or a combination of both, up to the IRS-set monthly limit.

Employers can choose to cover part or all of an employee’s eligible commuting costs, or simply allow employees to set aside pre-tax income to pay for them. When designed alongside the Maryland Commuter Tax Credit, organizations can maximize both federal and state savings while supporting more sustainable commute options.