Mass Transit and Vanpool Commute Program – Increased 2025 Subsidies for Eligible Employees
December 30, 2024. For 2025, the Internal Revenue Service (IRS) maximum monthly exclusion amount (monthly limitation) will be $325 for eligible employees (R01, R02, R03, R04, R06, R07, R08, R09, R10, R11, R12, R13, R14, R15, R16, R17, R18, R19, R20, R21, and all excluded employees), including employees headquartered out of state, for:
- Public transit (mass transit) passes
- 100 percent discount on public transit passes sold by state agencies, up to the monthly exclusion amount provided by the IRS.
- 100 percent reimbursement on public transit passes purchased by state employees, up to the monthly exclusion amount provided by the IRS.
- Vanpool drivers and riders
- 100 percent reimbursement on the monthly fee, up to the monthly exclusion amount provided by the IRS.
This amount is an increase of $10 over the IRS limit of $315 in effect for 2024.
The combined maximum allowable monthly exclusion amount for employees who are eligible to claim both mass transit and vanpool shall not exceed the combined IRS maximum monthly exclusion amount.
California Code of Regulations section 599.936 (Transit and Vanpool Incentives – Excluded Employees) provides mass transit and vanpool commute language for excluded employees. The MOUs provide mass transit and vanpool commute language for represented employees. CalHR’s Commute Programs page and Frequently Asked Questions page provide general information.
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