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Subsidizing public transit passes encourages staff to use less-polluting methods for getting to work, which in turn saves money, fossil fuels, and resources used to expand and improve infrastructure.

How to set up a public transit incentive program

Commuter benefit programs for employees, which can include subsidies for public transit passes, aim to provide incentives and services to help make the commute easier, affordable, eco-friendly, and enjoyable. Employees who are supported in this way are more likely to feel appreciated by their employers, and therefore demonstrate greater productivity and commitment to the company.

While you can certainly set up your own incentives and subsidies program, there are many companies (including public transit providers) already equipped to help you through the process. To find public transit systems and incentive program administrators in your area, check out Commuter Choice's state-by-state searchable database. If you choose to set up your own program, you'll want to consider what benefits to provide, who will administer the program, and how to deal with unforeseen staff emergencies.

Establishing a public transportation subsidy program

Getting set up to provide incentives and subsidies for public transportation shouldn't require complex systems, but a few pointers will set you on the right track.

• Choose a public transit coordinator. This person will be responsible for communication between your company, other staff, and public transportation providers. You may want to ensure that this person also sits on your employee-run green team.
• Poll your staff: Determine how employees currently get to work and gauge how many are interested in participating in a subsidized public transit program. You may also want to ask what incentives would motivate them enough to choose public transit travel over the solo-car option.
• Determine how you will administer the program. Perhaps you want to have the passes or vouchers sent by the transit provider directly to your office every month, which you then distribute to those interested. Alternatively, employees can purchase a pass or vouchers through the transit office and be reimbursed by your company.
• Decide what percentage of the pass or vouchers to subsidize. Many commuter benefit programs include basic financial subsidies for public transit passes and vouchers, but they differ on how much is reimbursed. You may want to take into consideration your budget as well as tax incentives.

Beyond subsidies

Paying for all or part of your employees' public transit passes is one way to increase public transit ridership. You may want to also consider these incentives:

• Allow flexible work schedules: Alternative schedules allow employees to travel during non-peak times, meaning fewer commuters on the train all at once. Also consider allowing grace-time for interruptions in public transit schedules.
• Offer parking reimbursements: Providing automobile parking is often more costly than providing subsidies for public transit users, so consider reimbursing non-drivers for a portion of the money you save.
• Reimburse staff who take public transit to local business meetings: The city of Palo Alto, California, for instance, gives employees seven cents per mile for approved travel.

Emergency transportation

Some commuters are concerned that if they use public transit to get to work, they'll be stranded in times of emergency. To reduce these fears, you may want to establish a ride-home-policy. One option is to offer a company vehicle for those who need to rush home for personal reasons or during particularly bad weather. Another option is to pay taxi fare for those needing to leave work unexpectedly.

Promote your program

Once you've chosen what transit benefits you'll offer, make sure you let your employees know about the program.

• Send out emails and notices to all staff, including how they can benefit.
• Use your company newsletter to provide regular information about the program, including practical tips, accomplishments, etc.
• Post signs to direct people to the transit stops near your office.
• Enhance your company image by publicizing your commitment to alternative commuting methods through press releases, interviews, and events.
• Organize a company-wide alternative transportation day to educate your entire staff about the benefits of cycling, walking, carpooling, and public transit.
• Develop a listserv where employees can communicate with one another about their commuting habits. This can be a place where staff find like-minded people.
• Include program and incentive information in new hire packets: Make sure every new employee knows about the program and how they can get involved.

Subsidizing public transit passes for employees helps your business go green because...

• It encourages staff to use less polluting methods to commute than driving solo, thus reducing your company’s overall CO₂ emissions.
• It decreases the land area required for automobile parking, and therefore reduces water runoff and pollution.
• By taking cars off the road, congestion is cut, noise is decreased, and motor vehicle accidents are reduced.

Getting to and from work requires a lot of time, resource-intensive infrastructure, and results in huge emissions of carbon dioxide and other air pollutants. Making it easier for employees to use public transit can not only reduce business costs, it's also easier on the earth.

Greenhouse gas pollutants

Nearly 14 million Americans take public transit daily, which saves the equivalent of 45 million barrels of oil every year.[1] Buses, which emit 80 percent less carbon monoxide and are 91 times safer than the average car, can carry the equivalent of 60 car-loads of people. Trains, on the other hand, carry 200 car-loads of people, and are therefore the most efficient public transportation option.[2] If 10 percent of Americans used public transit every day, the US would decrease its reliance on foreign oil by 40 percent.[3]

Infrastructure requirements

The capital costs of a single surface parking space for vehicle commuters can range from $2,000-$5,000; a space in a two to three story structure anywhere from $10,000-$12,000. In addition, these parking spaces must be maintained, at a cost of 1.5 percent on the initial capital cost per year. These concrete auto storage units decrease permeable surface area, increase water runoff and pollution, and to the extent that they encourage people to use vehicles, also increase air pollution, congestion, noise, and motor vehicle accidents.

Wainwright State Office building in St. Louis has a transportation benefit program that subsidizes 75 percent of the cost of monthly transit passes for 16 percent of its employees. It pays $30/person for the passes, but since those who participate no longer require parking spaces, which cost $64/car, savings average about $34 per person per month.[4]

Related employee health issues

Providing employer commuter programs is beneficial for a company’s long-term health. Many job-seekers look for employers willing to provide commuter benefits. This is due in large part to the inconvenience of making the daily commute. Vehicle commutes are time-consuming. In a recent UK survey, it was found that 4 million people use cars to travel less than three miles to work, even though the same commute would only take 20 minutes by bicycle.[5]

Regardless of the many health benefits of a self-propelled commute (15 minutes of cycling per day reduces heart attack risk by 50 percent), and the apparent cost and time savings over driving or taking public transit, commuters spend an aggravating 55 hours each year stuck in traffic.[6][7] Collectively, this adds up to approximately 3.7 billion hours and 23 billion gallons of gas wasted in traffic in the US every year.[8]

Companies that offer commuter benefits that help employees save time and money, such as subsidies for public transit passes, are better able to attract and retain good employees, encourage lower-stress living, while also enhancing their public image. Calvert Group in Arlington County, Virginia, established a benefit program in 1987, which has grown to provide benefits for 55 percent of its staff. In part, the company credits this program with boosting employee morale, cutting the turnover rate, enhancing recruitment, and improving its public image.

Tax breaks and subsidies

Employers can provide tax-free benefits up to $1,200 per person per year for public transit, thanks to a federal incentive program. This program allows companies to skip the payroll taxes on the benefit. Employees benefit, too, by not paying income or payroll taxes on it. This is like raising an employee’s salary by $1,200 per year without taking extra taxes out of their paychecks. However, these benefits must be given to employees in the form of vouchers or transit passes, not in cash reimbursements.

In addition to these federal benefits, some states offer their own tax incentives for companies wishing to discourage solo-commuter habits:

• Oregon’s Business Energy Tax Credit: Encourages investments in energy conservation. These can apply to bicycle projects, car sharing projects, and commuter pooling of vehicles.
• Washington State Tax Credit and Rideshare Subsidy Grant for Employers: Available for those businesses that provide subsidies to employees who use public transit, state ferries, carpool, or cycle as their primary means for commuting to work.

External links

• Air Resources Board of California - arking Cash-Out Incentive: Eight Case Studies
• American Public Transportation Association - Treasury Clarifies Rules on Tax-Free Transit Benefits
• Best Workplaces for Commuters: Information for businesses seeking to encourage employees to opt out of solo-commuting.
• Commuter Choice: A nationwide partnership designed to help employers create customized solutions for their employees’ commuting challenges.
• Google Transit: A service by Google to make it easier to navigate public transit systems. By entering a start and end address with either a departure or arrival time, users can determine where and when to take public transit in their area.
• SunTran - Employer Info: Commute to Work
• TaxFreeTransit.org: A public service dedicated to raising awareness about the tax-saving advantages of riding mass transit.