You can live anywhere and still be eligible for cost savings for transit trips, benefits for bikers and walkers, telework options, and tax incentives – so long as your employer is in Montgomery County.

Local Transit Subsidies

Fare Share Program Changes - Take Note!

Extended to five years and up to $150,000 total contribution by Montgomery County. 

Fare Share is available to all businesses in Montgomery County that are not located in the County's four Transportation Management Districts (TMD).  Fare Share now offers matched dollars - up to $30,000 each year for five years - to each contributing organization for employees' public transportation to and from your workplace.Transit options include: Ride On, Metrorail, Metrobus, MARC train and vanpool.

In Year One, the participating employer pays only $1.00 per month for each employee who commutes by transit. Montgomery County pays up to  $114.00 per month per employee.

In Years Two to Five, your company's contribution increases as the County's matching contribution declines.  The following table summarizes the newly enhanced Fare Share

Program Year	Employer Share	County Share	Remarks
1	$1	$114.00	County provides up to $114.00/month/employee
2	50%	50%	County provides up to $57.50/month/employee
3	60%	40%	County provides up to $46.00/month/employee
4	70%	30%	County provides up to $34.50/month/employee
5	80%	20%	County provides up to $23.00/month/employee

This combined amount of up to $115.00 is tax-free to the employee and a tax deduction for the employer under Federal tax law.

In addition to the tax deduction, employers contributing to their employees’ transit costs are eligible for a TAX CREDIT from the State of Maryland. Be sure to check out Maryland Commuter Choice Tax Credit.

To set up your own Fare Share program or to get more information, contact us at 240-773-BWTW (2989) or email us at mcdot.CommuterServices@montgomerycountymd.gov.

 

Super Fare Share - Program Enhancements

If your business is located in one of Montgomery County’s Transportation Management Districts – downtown Bethesda, North Bethesda, Friendship Heights, or downtown Silver Spring-- you could be eligible for up to $270,000 in transit benefits during the next nine years. (For more infomation about Transportation Management Districts, click here.)

Super Fare Share will encourage your staff to take transit to work. You will be providing a valuable benefit to your employees who help reduce traffic congestion, and in turn you’ll be rewarded with improved recruiting and retention for your business. And you may be eligible for a 50% tax credit from the State of Maryland for your out-of-pocket costs!

Changes to Super Fare Share include longer program length, a new annual maximum subsidy for employers, an increase in the tax-free benefit available each month to employees and a progressive employer contribution.

The newly enhanced Super Fare Share is now a nine year program. In Year One, the employer pays $1.00 per participating employee and the County pays up to $114.00 per month per employee. 

In Years Two to Five, your company would pay up to $57.50 per month per employee, and the County matches your contribution up to $57.50 per month.  In Years Six to Nine, your company’s contribution increases as the County’s matching contribution declines. The following table summarizes Super Fare Share:

Program Year	Employer Share	County Share	Remarks
1	$1	$114.00	County provides up to $114.00/month/employee
2-5	50%	50%	County provides up to $57.50/month/employee
6	60%	40%	County provides up to $46.00/month/employee
7	70%	30%	County provides up to $34.50/month/employee
8	80%	20%	County provides up to $23.00/month/employee
9	90%	10%	County provides up to $11.50/month/employee

In addition to the tax deduction, employers contributing to their employees’ transit costs are eligible for a TAX CREDIT from the State of Maryland. Be sure to check out Maryland Commuter Choice Tax Credit.

To set up your own Super Fare Share program, or to get more information contact us at 240-773-BWTW (2989) or email us at mcdot.CommuterServices@montgomerycountymd.gov

Maryland Commuter Choice Tax Credit

With the Maryland Commuter Choice Tax Credit employers can receive a tax credit of 50 percent of the amount they spend on employee commuting benefits – up to a maximum of $50 per month for each participating employee.

Any combination of benefits can be used, and employers can take this credit against the State Income Tax, the Financial Institution Tax, or the Insurance premium Tax. It’s your choice.

These employer-provided commuting expenses qualify for the tax credit:

• Metrorail, Metrobus, MARC, and Ride On transit passes, tokens, fare cards provided free or at a reduced cost
• Vanpools, seating eight or more adults, and provided by the employer. Van purchase and leases, fuel, insurance, safety, and equal-access upgrades can qualify for the tax credit if paid directly by the employer.

For more information, contact us at 240-773-BWTW (2989) or email us at mcdot.CommuterServices@montgomerycountymd.gov.

Transit Benefits/Pre-Tax Payroll Deduction

Research has shown that providing employer-paid transit benefits is most effective in persuading employees to switch to transit.

A maximum of $230 per month ($2,760 per year) is allowable tax-free or pre-tax to employees as a transit benefit towards their use of Transit or Vanpools to commute to work.  An employer can offer Transit Benefits as a salary increase, bonus, award, or other incentive. However, amounts over $230/month are taxable.

Some employers will have cost concerns about providing up to $230/month in transit benefits, one possible way to overcome that concern may be with a combination of direct transit benefits offered by employers and pre-tax payroll deduction.  For example an employer could provide a direct transit benefit (in addition to compensation) of $115/month, and the remaining $115/month as pre-tax payroll deduction, which saves both employers and employees on payroll taxes. 

Employers can also partner with Montgomery County to provide Transit benefits to employees, by participating in the FareShare Transit subsidy Program.  While the FareShare program maximum is $115/month, with Montgomery County contributing up to $114/month, and the employer contributing a minimum of $1/month.  One way to offer an employee the opportunity to get the allowable $230/month, will be for an employer to provide any part of the additional $115 as a Tax-Free Transit Benefit, or allow employees the option to get the balance from pre-tax payroll deduction.

Internal Revenue Service information about the pre-tax payroll deduction can be found here.

 SmartBenefits Program

SmartBenefits is a web-based program that lets employers load the dollar value of an employee’s transit benefit directly on his or her SmarTrip card for use on regional transit systems.  Employees take their permanent, plastic, electronic SmarTrip card to any Metro station’s Passes/Farecards machine between the first and last day of the benefit month and claim their benefit. The SmarTrip card costs $5 and can be registered with a unique serial number at the time of purchase.  For transit sytems that do not accept SmarTrip cards, SmartBenefits vouchers can be provided to employees.

For information about SmartBenefits Vouchers, please click here.

Car Sharing

Car sharing is available at these Metrorail stations in Montgomery County: Bethesda, Grosvenor-Strathmore, Silver Spring, Shady Grove, and White Flint. Call 240-773-BWTW (2989) or email us at mcdot.CommuterServices@montgomerycountymd.gov for more information.

Guaranteed Ride Home

If you use mass transit, carpool, vanpool, bicycle, or walk to work at least twice a week, you are eligible for the Guaranteed Ride Home (GRH) program, which offers you a free ride home by taxi, rental car, bus, or train, up to four times a year when unexpected personal emergencies arise. Register with Commuter Connections, Metropolitan Washington Council of Governments via the link above or call 1-800-745-RIDE (7433).

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