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Blumenauer Introduces Parking Cash Out Legislation to Incentivize Sustainable Commuting

Press Release

Date: Aug. 8, 2022
Location: Washington, DC
Issues: Transportation

Last week, Congressman Earl Blumenauer (D-OR), founder and co-chair of the Congressional Bicycle Caucus introduced legislation requiring employers to offer a parking cash out option to employees who are otherwise offered a parking benefit. The value of the cash option would be equal to that of the parking benefit and taxable as ordinary income.

"As the climate crisis continues to intensify, the federal government must examine every policy available to reduce carbon emissions" Blumenauer said. "Currently, the tax code effectively penalizes employees who choose to make carbon-free commutes like biking or walking."

Blumenauer's legislation to amend the Internal Revenue Code to require employers to offer a cash out option equal to that of the parking benefit gives commuters the flexibility to choose between free parking or receiving cash of equal value. Commuters could continue to park for free at work or opt to take the cash value of the parking benefit and put it towards anything they want, including more sustainable forms of transportation like an electric bicycle or rent for an apartment within walking distance of work.

Several local governments have successfully implemented parking cash out policies to reduce congestion and incentivize more sustainable forms of transportation, including Washington D.C., California, and Rhode Island. A 1997 study of California's parking cash out policy found that when employers offering a cash alternative to parking benefits, solo driving fell 17%, carpooling increased 64%, transit ridership increased 50% and walking or biking increased 39%.

Blumenauer's legislation is supported by America Walks, Association for Commuter Transportation, California Yimby, Coalition for Smarter Transportation (CoaST), League of American Bicyclists, Lyft, North American Bike and Scooter Share Association (NABSA), NRDC, Parking Reform Network, PeopleForBikes, Sightline, Spin, Transportation for America.


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