Montgomery County’s ‘Fareshare’ Program

Industry Observer with Retired

Montgomery County’s ‘Fareshare’ Program



The Montgomery County Department of Transportation “FareShare” Program will provide employees with additional incentives to use public transportation to get to work. The Internal Revenue Service has increased the pre-tax limit for employer-provided commuting benefits to $300 per month, from $280 last year, including transit passes and vanpool fares for 2023.

With the recent increase in the Internal Revenue Service’s tax-free limit, commuters working in Montgomery County can receive the reimbursement by asking their employers to set up a commuting benefits program.

MCDOT’s “FareShare” program will reimburse employers for all but $25 per month of their employees’ costs for commuting, up to $300 per month. The money is tax-free to both the employee and the employer.

The program covers expenses incurred by commuters using Ride On bus, Metrobus, Metrorail or MARC train. It also covers expenses for vanpools, as long as the employee commutes to and from a workplace within Montgomery County. A separate provision also allows for remote parking, such as Metro parking costs, as a separate covered benefit, up to an additional $300 a month.

"This is a great incentive that I hope all businesses in Montgomery County will take advantage of," said County Executive Marc Elrich. "This employee benefit lowers the cost of commuting to work and takes cars off the road, reducing pollution and greenhouse gas levels."

Businesses looking to implement or expand a transportation benefit program must commit to covering the first $25 per month of travel costs for participating employees. The County will cover commuting costs over the initial $25, up to $300 a month. The full subsidy could be as high as $3,600 per year, per employee. There is a maximum payout of $40,000 to each business per year.

The FareShare reimbursements offset the cost to employers who pay for their employees’ commutes. Employers can also offer a pre-tax payroll deduction benefit at no cost to the employer—or a combination of both.

MCDOT Commuter Services staff offers free assistance in setting up a commuter benefits program that is tailored to each business and their employees’ needs.

Participating employers also are eligible for a State tax credit of 50 percent of their $25 contribution per enrolled employee each month, reducing their State tax payment. This credit is available to for-profit and nonprofit organizations. For more information on tax credits, visit Commuter Choice Maryland here.

Depending on how many employees participate in the commuting benefits program, and the amount they incur for their commute, an employer participating in FareShare and the State tax credit program may be able to save thousands of dollars per year in combined payroll and State income tax payments.

“It is good to see more resources being put forward to encourage the use of public transit,” said MCDOT Director Chris Conklin. “This increase has the potential to assist a lot of people who have now returned to the office in some capacity. This is a good opportunity for employers to provide an impactful benefit to their employees.”

Transportation benefits help raise employee satisfaction, help businesses recruit and retain employees and help present the organization as an employer that cares about its workforce and the environment.

In addition, each year MCDOT’s Commuter Services Office partners with County businesses to help them apply for the Metropolitan Washington Council of Governments’ Employer Recognition Awards. Now is the time to work with Commuter Services to bring recognition to a company for its commuter benefit programs through these awards.

Last year, Montgomery County Commuter Services partner Ellumen, Inc. received the 2022 Employer Recognition Award for the marketing of its commuter benefits program. The small, privately held healthcare IT company based in Silver Spring reduced employee vehicle miles traveled by 512,080 miles and saved an estimated annual 23,276 gallons of gas through marketing efforts geared toward employees.

For more information and to request free support to implement or increase a transportation reimbursement program, visit the MCDOT website here.

This is a Montgomery County, Maryland announcement.


Chrysanthemum, Longwood Gardens, Kennett Square, Pennsylvania USA IMG 7667
Canon PowerShot G11 Camera
Photograph by Roy Kelley
Roy and Dolores Kelley Photographs

Posted by

Roy Kelley, Retired, Former Associate Broker, RE/MAX Realty Group

Gaithersburg, Maryland  

Comments (18)

Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker - Retired

Good morning Roy. A program that could have merit in many cities where traffic in the central business hub is an ongoing problem. Enjoy your day.

Feb 01, 2023 04:29 AM
Lawrence "Larry" & Sheila Agranoff. Cell: 631-805-4400
The Top Team @ Charles Rutenberg Realty 255 Executive Dr, Plainview NY 11803 - Plainview, NY
Long Island Condo and Home Specialists

I've never heard of such a program as this Roy. Very interesting and let's hope that those who need this are the ones that apply!

Feb 01, 2023 04:42 AM
faye schubert
Retired - Branson, MO
Living the Branson Lake Life

Love this concept.

In my work life, I commuted in carpools and then vanpools.

My company subsidized parking, but not the vanpools as I believe it was a too cumbersome with the various vanpool companies. 


Feb 01, 2023 04:44 AM
Bill Salvatore - East Valley
Arizona Elite Properties - Chandler, AZ
Realtor - 602-999-0952 / em:

Wonderful program. Thank you for the great information in your blog today to share with us here on the Rain.  Make it a terrific day! bill


Feb 01, 2023 05:32 AM
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

Good morning, Roy. As someone who grew up commuting to school via public buses and subways in NY City and then commuting that way to work, I'm all about using public transport. 

Feb 01, 2023 05:49 AM
Nick Vandekar, 610-203-4543
Long & Foster Real Estate Inc 610-225-7400 - Devon, PA
Selling the Main Line & Chester County

What a great program to tackle the costs of commuting and help the environment at the same time.

Feb 01, 2023 07:50 AM
Dorie Dillard Austin TX
Coldwell Banker Realty ~ 512.750.6899 - Austin, TX
NW Austin ~ Canyon Creek and Spicewood/Balcones

Good morning Roy,

Once again Montgomery Counting is leading the way with a wonderful program to help its residents cope with the cost of commuting.

Feb 01, 2023 10:08 AM
Lise Howe
Keller Williams Capital Properties - Washington, DC
Assoc. Broker in DC, MD, VA and attorney in DC

great program - thanks for sharing. win win with the environmental benefits - I do hope people take advantage 

Feb 01, 2023 11:43 AM
Myrl Jeffcoat
Sacramento, CA
Greater Sacramento Realtor - Retired

Since transportation costs can be expensive for many, this is a great program, Roy.

Feb 01, 2023 01:01 PM
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Roy, sounds like not only is it good for employees, maybe will take some cars off the streets.

Feb 01, 2023 01:45 PM
Roy Kelley
Retired - Gaithersburg, MD

Thank you very much for your comments. It is always good to hear from you.

Feb 06, 2023 05:54 AM