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Last Updated: 12/27/2017

Transit Pass Credit for Employers

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Individual Income Tax

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Employers who purchase transit passes to give or resell to employees may be eligible for this credit. If you qualify, you may claim a nonrefundable credit equal to 30 percent of the difference between what you paid and what you charged employees for the transit passes.

How do I qualify?

To qualify, you must meet all of the following requirements:
1. The transit pass must be a pass, token, farecard, voucher or similar item entitling a person to transportation at regular or reduced prices.
2. The transportation must be provided by either:
  • a public or privately-owned mass transit facility; or
  • a person in the business of transporting people for compensation or hire. The vehicle must have seating capacity for at least six adults, not including the driver.
3. The passes must be used in Minnesota.

Reporting the credit

To claim the Transit Pass Credit for Employers:
Note: When filing Form M1, include credits received as an individual, a partner of a partnership, a shareholder of an S corporation or a beneficiary of a trust. Include the Schedule KPI, KS or KF you received from the entity.