What is the economic stimulus package?
A. Officially known as the American Recovery and Reinvestment Act, this bill was signed into law by President Obama on February 17, 2009 to provide financial relief for a severely weakened U.S. economy. The bill offers several tax-cutting and Federal investment measures, including a provision to increase the transit benefit cap from its current $120 a month limit to $230. By providing these additional tax savings, commuters can recoup up to $1,000 or more a year in tax-free savings for the necessary cost of travel to and from the workplace. And by placing this transit limit on the same level as the current parking benefit limit, the more attractive incentive to choose transit as a mode of transportation over driving could reduce traffic congestion and improve air quality, which is the environmental value of this benefit.
