Section 13304 of Public Law 115-97, The Tax Cuts and Jobs Act of 2017, provides that no deduction is allowed to an employer for qualified transportation benefits incurred or paid after December 31, 2017. In addition, no deduction is allowed for any expense incurred for providing any transportation, or any payment or reimbursement to an employee, in connection with travel between an employee's residence and place of employment, except as necessary for ensuring the safety of the employee, or for qualified bicycle commuting reimbursements. While the deduction for payments for qualified transportation benefits has been repealed, the fringe benefit exclusion rules still apply and the payments may be excluded from employee wages. For federal and Wisconsin purposes, the amount that may be excluded from employee wages for 2018 is limited as follows:

• $260 per month for qualified parking
• $260 per month for commuter highway vehicle transportation and transit passes

NOTE: Section 11047 of P.L. 115-97 repealed the exclusion from wages for qualified bicycle commuting fringe benefits for taxable years beginning after December 31, 2017, and before January 1, 2026. Wisconsin adopted this federal provision, and the provision repealing the deduction for qualified transportation benefits, in 2017 Act 231.

May 1, 2018