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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.
You may participate in this program if you are a state employee who does not have access to state-controlled or 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, reducing 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 2023 tax year, you can deduct your actual cost of parking, up to $300 per month.
The Program is governed by section 132(f) of the Internal Revenue Code - Qualified Transportation Fringe Benefits.
The Internal Revenue Code 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 Internal Revenue Code does not allow for automatic refunds of excess money in your Program Account. Please read the Frequently Asked Questions and Forfeiture Information below.
If you are an active state employee, you have one year from the date of your last activity (deduction or submission of a claim) to submit a claim for reimbursement. Claims must reflect costs incurred while you were an active participant in the Program and include valid parking receipts. Costs incurred after your last date of eligibility are not eligible for reimbursement.
If you separate from state service, you have one 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.
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.