EFFECTIVE JULY 1, MARYLAND BUSINESSES HAVE MORE WAYS TO EARN TAX CREDITS BY PROVIDING EMPLOYEES WITH COMMUTING OPTIONS

​FOR IMMEDIATE RELEASE
Contact: MDOT Public Affairs
Erin Henson, 410-865-1025
Jim Joyner, 410-865-1030 

EFFECTIVE JULY 1, MARYLAND BUSINESSES HAVE
MORE WAYS TO EARN TAX CREDITS BY PROVIDING
EMPLOYEES WITH COMMUTING OPTIONS

Carpools, Telework, Biking and Walking Now Included
in Maryland Commuter Tax Credit Program

(HANOVER, Md., June 30, 2022) – Legislation expanding the Maryland Commuter Tax Credit program will take effect July 1, giving in-state businesses credits for providing employees with additional commuting options. The legislation expanding tax credit opportunities was sponsored by the Maryland Department of Transportation (MDOT) and approved by the General Assembly during its 2022 session.

The Maryland Commuter Tax Credit allows businesses to be reimbursed for up to 50% of employer-provided commuter costs – up to $100 per employee. Legislation expanding the program allows additional commuter options to qualify for tax credits, including employer-supported carpooling and teleworking, as well as employee participation in “active transportation" such as walking, bicycling or use of a scooter as a commuting choice.

Tax credits also are now available to help offset costs of “last-mile" needs – helping employers pay for up to five miles of multimodal travel connecting an employee with a non-single-occupancy travel mode to or from work. An example would be an employee using a ride hailing service to bridge the gap between a transit stop and their work site.

While commuting has largely returned to levels at or near pre-pandemic volumes, many Marylanders have expressed willingness to consider commuting options. The new additions bolster existing options allowed under the program, such as employer-supported transit, vanpool, cash in lieu of parking and guaranteed ride home provisions.

“The expansion of the Maryland Commuter Tax Credit gives employers and employees greater benefits and flexibility," MDOT Secretary James F. Ports, Jr. said. “By providing more commuting options that qualify for tax credits, Maryland is working to ease congestion, conserve energy and protect the environment. The tax credits also help employers attract and retain the best talent, making Maryland even more competitive in the marketplace."

MDOT is authorized to issue up to $1 million per fiscal year through the Maryland Commuter Tax Credit program. More details are available at mdot.maryland.gov/mdcommutertaxcredit. For more information on Commuter Choice Maryland, go to CommuterChoiceMaryland.com or contact Gladys Hurwitz at commuterchoice@mdot.mayland.gov.

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