Monthly Limits for Qualified Transportation Plan Announced

According to IRS Rev. Proc. 2011-52, beginning in 2012, the combined monthly limit for Qualified Transportation in a commuter highway vehicle and any transit pass is $125.  While the monthly limit for qualified parking is $240, which is a $10 increase from the 2011 limit.

In 2009 due to the economic stimulus package, the maximum cap for commuter highway vehicle and any transit pass was temporarily increased to $230.

Qualified Transportation Plan (QTP) is an employer provided voluntary benefit program that allows employees to reduce their monthly commuting expenses.  Salary contributions used for eligible expenses are excludable from gross income subject to federal taxes.  QTP benefits consist of:

• Commuter transportation in a commuter highway vehicle
• Transit passes
• Qualified parking
• Qualified bicycle commuting expenses

Innova Insight
vol 2, no 10
October 2011