December 20, 2022. For 2023, the Internal Revenue Service (IRS) maximum monthly exclusion amount (monthly limitation) will be $300 for eligible employees (R02, S02, M02, R08, S08, M08 and related CEA positions (CEAs must be directly tied to Bargaining Unit 8), R09, S09, M09, R13, S13, R18, S18, and M18), including employees headquartered out of state, for:
- Public transit (mass transit) passes,
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- 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 $20 over the IRS limit of $280 in effect for 2022.
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.
