Bus Pass Subsidy
The RTC SMART TRIPS program encourages the use of sustainable transportation choices. It dates back to 1996. The first element of the program was a bus pass subsidy program. The RTC will match an employer's contribution to lower the cost of their employees' monthly bus passes up to 20%. Here’s one example based on a 20% match. The cost of a 31-day pass is currently $65.00. A company's subsidy at the 20% level would be $13.00. The $13.00 is a normal tax deductible expense. RTC will match that $13.00 contribution, making the employee's purchase price $39.00.
Transit costs qualify as transportation fringe benefits, so with an employer's cooperation, it would be possible for the amount the employee pays to be taken out of his paycheck before taxes lowering his net cost even further.