How are adjustments for inflation made?
A7: TEA-21 imposes a freeze on inflation adjustments for 1999. After 1999, adjustments may be made by the IRS each December for the following year until 2002. In 2002, the maximum for transit and vanpools was increased to $100/month.* The current level is $115/month. Qualified parking may or may not be changed depending on the IRS determination concerning whether cost of living increases trigger an increase. After 2002, the maximum for all benefits is subject to annual inflation adjustments as determined by the IRS. Increases triggered by cost of living increases occur in $5 increments.
