Maryland employers may be eligible for the Commuter Tax Credit by providing their employees with commuter subsidies. Businesses, including 501c3 and 501c4 organizations, may claim a tax credit of 50% of the amount of subsidies provided (up to $100 per employee per month) for qualified commuter benefits like Guaranteed Ride Home, Vanpool, Transit, Cash in Lieu of Parking, Telework, Carpool, Active Transportation, and Multimodal Commuter Last Mile Connection.

Apply for the Maryland Commuter Tax Credit

Federal Transportation Fringe Benefit

In addition to the Maryland Commuter Tax Credit, the Federal tax code allows employers to provide tax-free benefits (up to $315 per employee per month in 2024, and up to $325 per employee per month in 2025) for qualified parking, vanpool, and transit through a tax-free, employer-paid subsidy or pre-tax, employee-paid deduction (or a combination of the two).

Steps to File the Maryland Commuter Tax Credit:

1) Employers gather the necessary information to complete the Commuter Tax Credit application including business information, the types of commuter subsidies provided, and the subsidy amounts. Employers then complete the official application at the One Stop Maryland website.
2) The application is reviewed by Commuter Choice Maryland. When approved, the employer is emailed a certificate qualifying them for the tax credit.
3) When filing annual taxes, the employer includes the certificate with the tax forms to receive the credit.
Non-profit 501c3/ 501c4 – Submit MD State forms 508CR & MW508.
For-Profit Businesses – Submit MD State Form 500CRW
To file against the Insurance Premium Tax - document the tax credit in accordance with COMAR 31.06.04.03.

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