Senator Charles Schumer (D-NY) says, for now, transit riders should expect a tax benefit they've been using to die at the end of the year.
For the past several years, transit riders have been able to deduct up to $230 a month pre-tax to pay for commuting costs. That matches what motorists have been able to deduct for parking. But the transit deduction will revert to $125 as of January 1, Schumer's office says.
"Unfortunately, the Senate Republican Leadership refused to negotiate any tax extenders, including the mass transit benefit, energy efficient homes credits, and college tuition deductibility. We are going to fight hard to extend these vital middle-class tax breaks in January and I am hopeful we will be able to get it done," Senator Schumer said in a statement.
Our Todd Zwillich cautions that anything can happen in Washington's frenzy to pull together a deal so lawmakers can go home for the holidays. He'll be following the negotiations -- and we'll keep you updated.