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Last Updated: 5/15/2018

Transit Pass Credit for Employers

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If you are an employer who purchased transit passes to give or resell to your employees, you may qualify for a nonrefundable credit.
 

Do I qualify for this credit?

To qualify, all of the following must be true:
  • The transit passes are either passes, tokens, fare cards, vouchers, or similar items entitling a person to transportation at regular or reduced prices.
  • Your employees use the passes in Minnesota.
  • The transportation is provided by either of the following:
    • A public or privately-owned mass transit facility
    • 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.

How much is this credit?

The credit is 30 percent of the difference between what you paid and what you charged employees for the transit passes.
 

How do I claim this credit?

If you are a sole proprietor:
  1. Complete Schedule ETP, Employer Transit Pass Credit.
  2. Enter the credit amount from Schedule ETP on Schedule M1C, Other Nonrefundable Credits.
  3. Include Schedule ETP and Schedule M1C when you file Form M1, Individual Income Tax.
If you are a partner of a partnership, shareholder of an S corporation, or beneficiary of a trust, you will find your credit amount on Schedule KPI, KS, or KF. Enter this amount on Schedule M1C and include both schedules when you file Form M1.
 
For more information, see Minnesota Statute 290.06, subdivision 28.