Offering a Subsidy

"Because of the constant increase in the cost of parking in the downtown area, our employees place a high value on the transit subsidy we offer. It's one of our most affordable and appreciated employee benefits."

—Linda Owen, Human Resources Administrator

What is a subsidy?

A subsidy is an amount of money that an employer pays toward an employee's transit pass, carpooling or vanpooling costs. It can cover all or part of the cost—a fixed dollar amount or a percentage of the total.

Why offer one?

• Employees are more likely to use commute alternatives if there is a financial incentive.
• Most transportation-related subsidies are tax-deductible.
• If your company is subject to the ECO Rule, offering a subsidy can help you meet your trip reduction goal.
• It's a great way to reward those who already use alternative commute methods.
• A subsidy costs you less and your employees pay less in taxes than with a comparable salary increase.
• It is the single most effective promotional tool for your transportation program.
• You don't have to do it alone—TriMet is here to help you.