The Creating Opportunities To Motivate Mass-Transit Utilization To Encourage Ridership
Madam Speaker, as our economy continues to struggle, an immediate and cost-effective way to offer relief to consumers is to provide incentives for mass transit use. According to a study published by the American Public Transportation…
Madam Speaker, as our economy continues to struggle, an immediate and cost-effective way to offer relief to consumers is to provide incentives for mass transit use. According to a study published by the American Public Transportation Association (APTA), public transportation use in the U.S. saves an annual 1.4 billion gallons of gasoline. Factoring in the current average gasoline price of $1.65 per gallon, public transit saves consumers more than $2 billion in gas costs per year.
Greenhouse gas emissions from motor vehicles also pose a severe threat to our environment, as emissions from our transportation sector account for nearly a third of all U.S. emissions. Public transit, however, reduces CO2 emissions by 37 million metric tons annually. This is equivalent to the electricity used by nearly five million homes. If we want to get serious about emissions reductions, we must get serious about investing in public transit.
Current law allows businesses, governments, non-profits and employees to purchase tax-free transit benefits. However. there is no tax incentive for employers to directly subsidize their workers' transportation costs. The bipartisan Creating Opportunities to Motivate Mass-transit Utilization To Encourage Ridership (COMMUTER) Act of 2008 offers employers a 50 percent tax credit for all transit benefits provided to employees, up to $115 per employee per month. Under the COMMUTER Act, employees could receive up to $1,380 in free mass transit funds each year, with the employer receiving $690 in tax credits per employee. As family budgets continue to tighten, an extra $1,400 to $2,800 could help ease the burdens of health care and education or help bolster retirement savings.
A study recently conducted by BusinessWeek Research Services estimates that 53 percent of employees in Chicago, San Francisco and New York would take public transportation if their employer provided access to current transit benefits. Out of the respondents, 60 percent said their company does not provide tax-free commuter benefits.
I believe we must work to provide long-term solutions to our energy crisis, such as passing long-term tax incentives for research and development of renewable and alternative energy, fuels and vehicles; eliminating the so-called boutique fuels and offering the nation one clean burning fuel; financing energy development projects in China, central Asia and the Gulf to meet Chinese energy needs apart from oil; and increasing fuel economy standards.
But our economy, environment and national security cannot wait ten, twenty or thirty years for the entire restructuring of our energy policy--we need to take action now. I am proud to offer the COMMUTER Act with Representatives Dan Lipinski (D-IL) Judy Biggert (R-IL) and Peter Roskam (R-IL) and to help provide that immediate relief. I hope Congress will act swifly and in a bipartisan manner to pass this important legislation.