Bill Would Mandate Employers Provide Transit Commuter Benefit Program 

April 22, 2022

On Thursday, April 21, Councilmember Gym introduced a bill in Philadelphia City Council that would require private-sector employers with more than 50 employees to offer a transit tax benefit to their employees. As proposed, the legislation exempts the city and other governmental entities from providing this benefit to public employees. A covered employer would have the option of establishing a pre-tax, payroll deduction for mass transit expenses; an employer-paid benefit with the employer supplying transit passes or fares for mass transit; or a combination of these two options. Employers must also offer a tax-free reimbursement for certain bike expenses for bike commuters.

Councilmember Gym stated that this would cut workers’ federal income tax bill by an average of at least $200 annually. Employees qualify for receiving this benefit if they work at least 30 hours a week.

If this bill is passed by council and signed by the mayor, Philadelphia would be one of the first major cities in America to require employers offer this benefit. The effective date of the bill in its current form is December 31, 2022. 

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Joseph Hill

Managing Director, Cozen O’Connor Public Strategies

(215) 665-2065

Brianna A. Westbrooks

Government Relations Associate, Cozen O'Connor Public Strategies

(215) 665-4757

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