DC’s Clean-Air Transportation Fringe Benefit

DC’s Clean-Air Transportation Fringe Benefit

The District of Columbia passed an ordinance intended to encourage reduction in single occupancy transportation with the goal of improving the environment.

The ordinance applies to employers employing 20 or more employees and who offer free or discounted parking. Note, the ordinance does not apply if the employer owns the parking lot.

Employers who offer a parking benefit will need to:

  • Offer a choice between discounted parking or a clean-air transportation fringe benefit (such as transit pass, bus, vanpool, or bicycling).The employee cannot have both. If the employee chooses the clean-air fringe benefit and estimates that he/she will not use the full monthly amount, the employer is required to make up the difference by 1) providing additional compensation to the employee, 2) increasing the employer contribution to the employee’s health coverage, or 3) a combination of both.
  • Pay a clean-air compliance fee of $100 per month for each employee who is offered a parking benefit.
  • Develop a transportation demand management plan, subject to approval, that would reduce the number of commuter car trips made by employees by at least 10% from the previous year until no more than 25% employees’ commuter trips are made by car.
  • While not specifically listed in the ordinance, ceasing to provide free or discounted parking would remove the employer from the ordinance’s applicability.

The law requires all covered employers, regardless of which option is selected, to submit a report to the Director of the District Department of Transportation (DDOT) that includes the following:

  • Total number of employees
  • Number of employees
    • Offered a parking benefit
    • Using a parking benefit
    • Offered a clean-air transportation fringe benefit
    • Using a clean-air transportation fringe benefit
    • For whom the covered employer is paying to DDOT the $100 clean-air compliance fee;
  • The market value of the clean-air transportation fringe benefit for the covered employer; and
  • Whether any exemptions apply to the covered employer

The report is due every two years, with the first report to be submitted by January 15, 2023.

For additional guidance on this benefit, see the employer guide published by goDCgo, an initiative of the District Department of Transportation.


The information contained in this Benefit Beat is not intended to be legal, accounting, or other professional advice, nor are these comments directed to specific situations. This information is provided as general guidance and may be affected by changes in law or regulation. This information is not intended to replace or substitute for accounting or other professional advice. You must consult your own attorney or tax advisor for assistance in specific situations. This information is provided as-is, with no warranties of any kind. CBIZ shall not be liable for any damages whatsoever in connection with its use and assumes no obligation to inform the reader of any changes in laws or other factors that could affect the information contained herein.

DC’s Clean-Air Transportation Fringe Benefithttps://www.cbiz.com/Portals/0/Images/Qualified Transportation.jpg?ver=o4ntswQ6V7GMqkC06LEjzQ%3d%3dThe District of Columbia passed an ordinance intended to encourage reduction in single occupancy transportation with the goal of improving the environment. 2022-11-03T19:00:00-05:00The District of Columbia passedan ordinance intended to encourage reduction in single occupancy transportationwith the goal of improving the environment. Regulatory, Compliance, & LegislativeEmployee Benefits ComplianceNo