2014 brings Increased Incentives for Vanpooling

March 5, 2014

In the coming months, Massachusetts will join a growing number of regions that subsidize the capital cost of contracting for vanpools, which will significantly lower vanpooling costs for individuals. A finalized contract could be released as early as April, coming just in time to provide some relief to commuters who will also feel the effects of an MBTA fare increase this summer. Until then, vanpool vendor vRide plans to provide a $600 incentive per van so riders can start seeing benefits now.

New State Incentives

While the lingo for "capital cost of contracting" may sound technical and complex, it is actually a simple way for the state to incentivize vanpooling. Once the new contract is complete, the state will be able to provide approved vanpool vendors with a $600/month subsidy for each van that the vendors oversee in Massachusetts. In addition to vRide, both Easy Street and Enterprise are anticipated to be approved vendors in the contract. These vendors will pass the benefit to vanpool riders by reducing the cost of leasing their vans.

Vanpool Subsidy Program

In addition to state incentives, employees and tenants of ABC TMA members are eligible to receive $220 towards their vanpool fare over 6 months. Participants receive the subsidy incrementally in the form of commuter checks as indicated below:

$50 for 1st and 2nd months
$35 for 3rd and 4th months
$25 for 5th and 6th months

Participants can choose to (a) use the subsidy to reduce their vanpool fare, (b) split the subsidy with the person who recruited them to the vanpool, or (c) contribute the subsidy towards lowering the overall vanpool expenses and lowering each rider's monthly cost. You can learn more about the subsidy program and register online. As well, many ABC TMA members offer free or discounted parking to vanpools, further reducing riders' monthly cost. Integrated Properties, owner of 131 Dartmouth Street, currently has 3 vanpool parking spots available. Boston Properties also recently added a vanpool parking space at Atlantic Wharf. For more information on how to utilize vanpool parking, please contact ABC TMA.

Federal Incentives

Individuals are also able to use up to $130/month in pre-tax dollars towards purchasing their vanpool fare. While employers do not need to subsidize vanpooling, they must facilitate a pre-tax benefit program for their employees to participate. This allows employees to reduce their own tax liability and also benefits employers by lowering payroll taxes. You can read more about pre-tax transportation benefits here.

How do I join a vanpool?

With all of these great incentives, you can search for a vanpool along your commute route using vRide. For step-by-step assistance, you can also contact ABC TMA. (Pictured right: The Massachusetts Car-Free Week video shows you the fun, relaxation and time savings you'll enjoy when you choose vanpooling!)

Blog