Maryland Commuter Tax Credit and the Ride Smart Commuter Programs

Employers who subsidize their employees’ commuting costs through transit, vanpool, Guaranteed Ride Home, or Cash in Lieu of Parking are rewarded with federal and state tax deductions, state tax credits and reductions on certain payroll taxes. The Maryland Commuter Tax Credit program allows businesses, including 501c3 and 501c4 organizations, operating in Maryland to claim a 50% tax credit against the cost of providing commute alternative programs to employees - up to $100 per employee per month. For more information on qualifying programs and how to claim the tax credit, check out the Maryland Commuter Tax Credit.

In addition to the Maryland Commuter Tax Credit, employers may provide subsidized or pre-tax (or combination) transit, vanpool, and transit-related parking up to the 2021 IRS limit of $270 per month per employee, providing additional savings for employees and businesses.

Learn More

The Department of Public Works & Transportation’s RideSmart program manager can help your organization build, expand, and promote your commuter benefits programs. Visit the RideSmart programs overview for employers and commuters, and contact the team at info.pgcridesmartsolutions@co.pg.md.us or 301-883-5656.

Want to know if your business qualifies?