Maryland Commuter Tax Credit Registration Details

Maryland businesses can save money, retain and attract top talent, and reduce commuter stress for their employees when they provide many of the commuter benefits included with the Maryland Commuter Tax Credit. The Maryland Commuter Tax Credit can turn your employees’ Transit, Vanpool, Carpool, Active Transportation, Telework, Multimodal Last-Mile Connection, Guaranteed Ride Home, and Cash-In-Lieu of Parking into tax savings for your company. For more information visit CommuterChoiceMaryland.com

Maryland Commuter Tax Credit:

Maryland employers, including organizations exempt from taxation under §501(c)(3) or (4) of the Internal Revenue Code, may claim a tax credit for a portion of the eligible costs of providing commuter benefits to participating employees. The tax credit is 50% of the cost of providing the commuter benefits up to a maximum of $100 per month for each employee. The tax credit can be taken against the state personal income tax, corporate income tax, or the insurance premium tax.

The tax credit is applicable to the following commuter benefits offered by employer:

1. Travel that took place in any of the following: Publicly or Privately owned public transit systems such as an MDOT Maryland Transit Administration bus, MDOT MTA Commuter Bus, MDOT MTA Light Rail, MARC Train, WMATA Metrobus, or WMATA Metrorail used to transport an employee to or from home and the workplace.

2. Company Vanpool program (Vanpool vehicle must have a seating capacity of at least 6 adult individuals and be used primarily to transport employees between home and the workplace).

3. Guaranteed Ride Home program (Must be employer cost to provide any of the following for their employees: Taxi, Car Rental, Company Vehicle, Transit).

4. Cash-in-Lieu-of Parking or "Parking Cash-Out" program (employer-funded program where an employer provides a cash allowance to an employee in an amount equal to the parking subsidy that the employer would otherwise pay or incur to provide the employee a parking space).

5. Telework program (employer covers prorated costs associated with teleworking including internet, computer equipment, telephone, software and supplies not provided by the employer but required for the job, and memberships for co-working spaces and telework centers).

6. Carpool program (employer provides subsidy to employee who carpool). The following requirements must be met: (1) share the commute with two or more individuals for more than 80% of the trip, (2) costs covered include E-ZPass and/or toll fees, parking fees, or other costs associated with carpooling as appropriate, and (3) participating carpoolers are registered with the Commuter Connections Ridesharing Program.

7. Active Transportation program where employer provides subsidy to employees who walk, bicycle, or scooter (includes bicycling on a bicycle with an electric component and operating a scooter with an electric component). Covered subsidies include bicycle maintenance, bikeshare and scooter-share memberships, bicycling gear (limited to helmets, hydration packs, bottles with cages, spare tubes, patch kits, pump, tire levers, cycling multitools, bike shoes, bike gloves, saddle bags, reflective accessories, locks, and walking or running shoes).

8. Multimodal Last-Mile Connection (employer-funded ride hail service for up to five miles to connect employee who participates in a commuter benefit option(s) to work and/or a multimodal option of transit, carpool, vanpool, and active transportation).