With the DC Parking Cashout Law reporting deadline approaching on January 15, 2025, employers across the District are asking: do I need to report my compliance this year and what do I report? This reporting cycle, all District employers with 20 or more covered employees* need to report.
*A covered employee is a part-time or full-time employee who works in a District of Columbia office or on a hybrid schedule where at least 50% of their working time is in the District of Columbia.
Not sure how to report this year? Never reported before? Read on for more information on what you need to do in 2025.
If you want to change your compliance option
If you’ve never reported before
If You've Reported Previously:
If you reported previously (e.g., in 2024), you will need to comply in the following ways depending on which compliance option you chose:
Offered a Clean Air Transportation Fringe Benefit (Parking Cashout)
To report your compliance in 2025, submit a report breaking down the number of employees who are offered and who accept the Clean Air Transportation Fringe Benefit for the upcoming year. You can collect this information by sending an intake form to your employees directly using the DC Parking Cashout Law reporting dashboard. These results can be found in the “analytics” tab.
Resources
Clean Air Transportation Fringe Benefit Email Template
Clean Air Transportation Fringe Benefit Guide
Developed and Implemented a TDM Plan
By January 15, 2025, employers with an approved TDM plan from a previous year must conduct an annual commute survey and submit their results that show a 10% reduction in drive alone rate (or that their drive alone rate is 25% or less). You can conduct your annual commute survey through the reporting portal.
Additionally, all employers who developed and implemented a TDM plan must re-submit their plan through the portal. This serves as an opportunity to re-evaluate your organization’s TDM strategies. Employers who found success in drive-alone reduction may re-enter the same strategies they submitted in the previous year.
If an employer does not initially meet the 10% reduction requirement, they will have an additional 180 days to reduce the drive alone rate. At that point, it is recommended that the employer reach out to goDCgo for assistance in reducing their employees’ drive alone rate to meet the requirements. If the employer has not met the 10% reduction after 180 days, they will have to select another compliance option and submit via DDOT’s reporting system.
Paid the Clean Air Compliance Fee
If you chose the Clean Air Compliance Fee option, you must repeat the process you completed in 2023. You’ll need to make a payment to the DC Treasury for the Clean Air Compliance Fee for 2024, of $100 per month/per employee offered a parking benefit this year and submit your proof of payment (copy of check) through the reporting dashboard by January 15, 2024.
You Reported an Exemption
If you submitted an exemption last time you reported, you will need to report your exemption again this year. If your exemption has expired you will need to choose and implement a compliance option by January 15, 2024.
If You Want to Change Your Compliance Option this Year:
You may choose a different compliance option annually. Since you’ll be starting from the beginning with the new compliance option, follow directions for those that have never reported in the section below.
If You’ve Never Reported Before:
First, determine if you are required to report to DDOT – all District employers with 20 or more covered employees need to report. A covered employee is a part-time or full-time employee who works in a District of Columbia office or on a hybrid schedule where at least 50% of their working time is in the District of Columbia.
Next, determine if you qualify for an exemption. If so, you’ll need to report it with proof of the exemption through DDOT’s reporting dashboard.
Exemptions include:
- Employers that own their parking and owned it before October 1, 2020.
- Employers that lease parking and the lease began before October 1, 2020, until the lease terms are up, regardless of possible extensions.
- Employers that have transportation demand management plans reviewed by DDOT before October 1, 2020, until the plan expires or until October 1, 2025 – whichever is earlier.
- Hospitals and universities with Campus Plans before October 1, 2020 until the end of the current term of the campus plan, regardless of any contemplated extensions.
- Employers who do not offer, or stopped offering, free, subsidized, or reimbursed parking.
If you do not qualify for an exemption, you must comply with the law in one of the following ways:
1. Offer a Clean Air Transportation Fringe Benefit
Often referred to as the Parking Cashout option, employers can offer employees the choice to receive a Clean Air Transportation Fringe Benefit (such as a transit or vanpool subsidy plus additional compensation) equal to or greater than the market value of their parking spot in exchange for giving up their parking benefit.
Reporting: Every two years, employers must submit a report to the District Department of Transportation providing a breakdown of the number of employees offered and accepted benefits under this option. If you have not reported before, please report by January 15, 2025.
2. Develop and Implement a Transportation Demand Management (TDM) Plan
A Transportation Demand Management (TDM) Plan is a plan your company creates to reduce employees’ commuter trips made by driving alone in a car (aka single-occupancy vehicle trips). Your plan must list strategies and a timeline for reducing single-occupancy vehicle trips by at least 10% from the previous year until 25% or less of employees’ commuter trips are made by car (including for-hire vehicles – taxi, Uber/Lyft, etc.).
Reporting: TDM Plans must be submitted by the reporting deadline of January 15, 2025, and will then be reviewed and approved/rejected by DDOT. Rejected plans will have a chance for revision and resubmission. Within 90 calendar days of the approval, the employer must provide DDOT with evidence demonstrating the employer’s implementation of the plan. The employer must submit their commute survey results annually and an updated TDM Plan biannually.
3. Pay a Clean Air Compliance Fee
Pay the District Department of Transportation (DDOT) a fee of $100 per month, per employee offered parking benefits. Payments must be made in yearly increments.
Reporting: Proof of payment must be reported annually or biennially (depending on if you choose to pay for one year or two) in DDOT’s reporting dashboard. This year, you will need to submit your proof of payment by January 15, 2025.
Compliance Tip: Discontinue Free or Subsidized Parking
By discontinuing free, reimbursed, or subsidized parking, you remove the criteria that requires you to comply with the law. Out of all the options, removing parking benefits is the quickest and most cost-effective way of complying with the law.
Note: If you choose this option, you still need to report that exemption to DDOT this year and every two years thereafter.
Get Help from goDCgo
If you need help navigating the compliance options, schedule a complimentary meeting with a goDCgo Employer Services representative. They’ll walk you through the necessary steps to report your organization’s compliance. Employers can also find Parking Cashout resources such as our toolkit, FAQs, templates, and more on our employer services page.
