United States Department of Agriculture

Marketing and Regulatory Programs

Animal and Plant Health Inspection Service

Agricultural Marketing Service

Directive MRP 1660.1 03/23/10

PRE-TAX PARKING BENEFIT PROGRAM

1. PURPOSE

This Directive establishes the pre-tax parking benefit program for Marketing and 

Regulatory Program (MRP) employees.

2. AUTHORITIES

This Directive supplements the following laws, rules, and regulations:

a. Executive Order (E.O.) 13150, Federal Workforce Transportation, dated 

April 21, 2000.

b. Title 26, Code of Federal Regulations, Part 1, Qualified Transportation Fringe 

Benefits, 1.132-9.

c. 5 United States Code 7905.

3. REPLACEMENT HIGHLIGHTS

This Directive replaces AMS Directive 1633.2, Pre-Tax Parking Benefit Program, dated 

1/9/07.

4. POLICY

a. MRP supports programs that improve air quality and reduce traffic congestion, 

and encourages its employees to commute to work by methods other than singleoccupant vehicles.

b. The pre-tax parking benefit program applies to employees who park at eligible 

parking locations (e.g., metro parking lot, commercial parking lot, privatelyowned parking lot, parking garage, parking meter, or employer-provided parking) 

and who take mass transportation, serve as the primary driver in a vanpool, or 

serve as the primary driver in a carpool of two or more persons to commute to 

work. A primary driver of a vanpool or carpool is defined as driving a minimum 

of 50 percent (e.g., at least 5 of every 10 work days) of the time.

Distribution: APHIS, AMS Originating Office: HRD-WRWB
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c. Employees may be eligible for both commuter transit subsidy benefit and pre-tax 

parking benefits simultaneously.

d. The pre-tax parking benefit program is an employee pre-tax (excludes certain 

parking expenses from the employee’s taxable income) authorization only. There 

is no cost to MRP.

5. RESPONSIBILITIES

a. The MRP Transit Program Manager will provide Agency transit coordinators with 

training, technical assistance, and consultative services regarding pre-tax parking.

b. Program Commuter Transit Subsidy Coordinators will:

(1) Publicize the benefit to employees;

(2) Answer questions regarding the pre-tax parking benefit program;

(3) Accept and review the AD-1185, Pre-Tax Parking Application, from 

employees to determine eligibility and accuracy of data;

(4) Approve eligible AD-1185 forms;

(5) Submit the approved AD-1185 form to the APHIS Human Resources 

Division, Human Resources Operations – Minneapolis, Processing 

Section, for entry into the National Finance Center personnel/payroll 

system; and

(6) Maintain documentation for all pre-tax parking benefit program 

participants.

c. Managers and Supervisors will:

(1) Advise employees of their responsibilities, rights, and benefits.

(2) Take appropriate action (e.g., consult with the Program Commuter Transit 

Subsidy Coordinator) when it is suspected that an employee is receiving a 

pre-tax parking benefit for which the employee is not eligible.

d. Participating Employees will:

(1) Consult with the Program Commuter Transit Subsidy Coordinator and/or 

refer to the USDA’s “Frequently Asked Questions and Answers for PreTax Parking” guide which can be found at

https://www.dm.usda.gov/employ/worklife/transit/pretax-parking.htm. 
Issuance Change 1

4/2/18

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(2) Complete an AD-1185 form to certify eligibility for a pre-tax parking 

benefit;

(3) Provide proof of use of a qualified parking facility, (e.g., Metro parking 

lot, private lot, public lot, parking meter, etc.) to the Program Commuter 

Transit Subsidy Benefit Coordinator. If such proof is not available, the 

employee’s initial certification will suffice;

(4) Claim the parking facility cost (maximum authorized by law or the actual 

cost, whichever is less) only for commuting to or from work; and,

(5) Submit an AD-1185 form immediately to the Program Commuter Transit 

Subsidy Coordinator when there is an increase/decrease in parking rates 

which is less than the maximum allowable benefit, or, to cancel the pre-tax 

parking benefit when the employee becomes ineligible for any reason.

6. PROGRAM ADMINISTRATION

a. Employees who park at eligible parking locations (e.g., Metro parking lot, 

commercial lot, privately owned parking lot, parking garage, parking meter, or 

employer provided parking), and who take mass transportation, serve as the 

primary driver in a vanpool, or serve as the primary driver in a carpool of two or 

more persons to commute to work will be authorized to exclude certain parking 

expenses from their taxable income up to $260 per month (or any subsequent 

statutory limit), or their actual parking cost whichever is less. A primary driver of 

a vanpool or carpool is defined as driving a minimum of 50 percent (e.g., at least 

5 of every 10 work days) of the time.

b. Parking on or near property used by the employee for residential purposes does 

not meet pre-tax parking benefit program eligibility requirements.

c. Employees must complete the AD-1185 form (see Attachment 1). The 

employee’s pre-tax parking benefit becomes effective on the date that the 

employee’s AD-1185 form is signed by the Program Commuter Transit Subsidy 

Coordinator.

d. Drivers, alternate drivers, and passengers of vanpools and carpools who receive a 

free Federal parking benefit are not eligible.
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7. INQUIRIES

a. Employees should contact their servicing Program Commuter Transit Subsidy 

Coordinator with any questions. Program Commuter Transit Subsidy 

Coordinators should contact the MRP Transit Program Manager at 

301-851-2950 with any questions.

b. This Directive can be accessed on the Internet at 

http://www.aphis.usda.gov/library, and on the AMS Intranet at

http://agnis/sites/amsissuances/default.aspx. 

/s/

Joanne Munno

Deputy Administrator

MRP Business Services

Attachment