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Third Party Pre-Tax Parking Reimbursement Account Program

 This is not a subsidy program. The California Department of Human Resources (CalHR) administers the Third Party Pre-Tax Parking Reimbursement Account Program (Program). CalHR contracts with a third party vendor, Application Software, Inc. (ASI) for recordkeeping and claims adjudication.

General Information

You may participate in this program if you are a state employee who does not have access to state-controlled/owned (DGS, CalTrans, etc.) parking spaces or a department-sponsored parking program.

This Program is a voluntary payroll deduction program that allows you to deduct a specific dollar amount for work-related parking fees from your pay warrant prior to tax deductions; this reduces your taxable income. The funds taken out of your pay warrant go into a special reimbursement account that you will claim against. To receive payments from your account, you must submit a reimbursement claim form (CalHR 681) along with the required parking receipts.

Once the deduction begins for the Program it will continue without interruption until you stop or change it.

At the end of the tax year, the State Controller's Office (SCO) will report your taxable income as usual, excluding the amount of the pre-tax parking deduction from your gross taxable income. For the 2021 tax year, you can deduct your actual cost of parking, up to $270 per month.

Section 132(f) of the Internal Revenue Code (IRC) - Qualified Transportation Fringe Benefits, regulates the Program.

The IRC defines "qualified parking" as:

Parking on or near the employer's business premise or at a location from which the employee commutes to work by carpool, commuter highway vehicle, mass transit facilities, transportation provided by any person in the business of transporting persons for compensation or hire, or by any other means.

Unless you meet certain specific criteria, the IRC does not allow for automatic refunds of excess money in your Program Account. Please read the "Frequently Asked Questions" and the "Forfeiture Information" below.

Additional Information

Related Forms

The files linked from this page are PDFs and require Adobe Reader – get a free download.

Forfeiture Information

If you are an active state employee, you have one (1) year from the date of your last activity (deduction or submission of a claim) in which to submit a claim with valid parking receipts for reimbursement. Claims must reflect costs incurred while you were an active participant in the Program. Costs incurred after your last date of eligibility are not eligible for reimbursement.

If you separate from state service, you also have one (1) year from your date of separation in which to submit a claim for reimbursement of work-related parking expenses incurred prior to your separation. Claims must reflect costs incurred while you were an active participant in the Program. Costs incurred after your last date of eligibility will not be processed.

If you do not submit valid Program reimbursement claims within these specified time periods, you will forfeit the remaining balance in your account.

Contact Information

For more information or questions about the Program, please contact the Program Coordinator.

For questions concerning the status of a claim or your account balance, please contact ASI at (800) 659-3035.

  Updated: 1/25/2021
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