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Business Partners in Transit
Transit users bring tax benefits your business can bank on!
Thank you for your interest in our "Business Partners in Transit" Program. By becoming a "Business Partner in Transit" you can begin enjoying many tax and transit benefit programs from which you can profit, reward present employees, and attract new employees. Bottom line, you earn tax benefits when you encourage and help your employees commute using our many transit services.
By encouraging your employees to use our bus system and other transit services such as the SEPTA R2 commuter train, you are entitled to enjoy tax credits and many transit benefit programs as a "Business Partners In Transit."
- "T21 Compensation Plus" - give employees up to $105/month as a fringe benefit to commute via transit and the employer gets a tax deduction and savings on payroll taxes that would be paid as a taxable fringe benefit.
- "T21 Set Aside Plus" - let employees set aside up to $105/month of pre-tax income to pay for transit costs and save on payroll taxes that would be paid on income
- "T21 Combination Plus" - have the employee share the cost of commuting via transit, up to $105/month, with the employer, and share the tax credits above
- Welfare-to-Work Tax Credit - hire long-term welfare recipients and qualify for as much as an $8,500 tax credit per new hire
- TRAVELINK - The Travelink program allows employers with Department-approved transportation plans to qualify for tax credits against certain state corporate taxes
- RideShare Delaware "Home Free" Benefit - Your employees who use transit to get to work may also qualify for our RideShare Delaware "Home Free" benefit. This program, which requires pre-registration, provides a free ride for an emergency during the workday if the regularly scheduled transit service is unavailable.
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T21 Compensation Plus
ABC Trading Company gives hard working, loyal employee Betty Samson a perk and fringe benefit of $105 a month to buy bus tickets to get to work. The fringe is excluded from Betty's taxable wages, and the ABC Trading Company is excluded from paying federal payroll taxes on the transit commuter benefits.
T21 Combination Plus
Sally Gonzalez works at the Tri-County Market and uses the Route 5 bus to get to work. Sally sets aside $30 a month from her pay to buy bus tickets. Tri-County Market rewards loyal Sally with a perk of $35 a month to help her buy the tickets. Both Sally and Tri-County Market share the income and payroll tax exclusions up to a total of $105 a month.
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In addition to these state and federal benefits programs, you can receive additional services and benefits by joining the Transportation Management Association (TMA) of Delaware. TMA members qualify for intensive and customized assistance with their transportation needs. Employee Expos, workshops, surveys, advocacy, and GIS maps of employee locations are only a few of the TMA's special services. Membership dues are based on the number of your employees. For more information, visit www.tmadelaware.org.
For information on DelDOT's Travelink program visit the State of Delaware Code Online. The Travelink program is described in the Title 30 State Tax sections of 2030 to 2037.
Specific tax law information about the "T21" tax credit programs can be found in Section 132 of the IRS code and in the IRS's Business Expenses Publication No. 535.
DART First State's T21 Plans are provided for your information only, not as tax advice. You are advised to consult with your tax and finance professionals prior to undertaking any of the DART First State T21 Business Partners Plans - your invitation to tax and transit benefits, and bottom line cost savings!
To be a registered "Business Partners in Transit", and to learn how you can attract new employees and get tax credits, contact DART Rideshare Delaware at 302-658-9001.
119 Lower Beech Street, Ste. 100
Wilmington, DE 19805
302-576-6000
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