Key Points of this Note: Consistent with its legislative mandate to estimate the financial cost of any proposal that relates to a matter over which Parliament has jurisdiction, the PBO was asked to prepare a cost estimate of a Bill tabled in the second session of the 40th Parliament [C-466: An Act to Amend the Income Tax Act (transportation benefits)]. [...] Denise Savoie, Member of Parliament for Victoria, British Columbia, regarding the potential costs arising from the adoption of a Bill introduced in the second session of the 40th Parliament: Bill C-466, An Act to Amend the Income Tax Act (transportation benefits)1. [...] The greater the costs of implementation and administration of the employer benefit program, the less likely employers are to offer a program and, to a lesser extent, employees are to adopt it. [...] For Cana da, PBO staff estimated the value of the tax benefit using the potential tax exemptions outlined in C-466, the average marginal income tax rate of Canadian federal filers in 200711 and the actual rates for employer payroll deductions in 201012. [...] The size of the subsidy is assumed to be within the range of 10% to 30%, based on historical U. S. data and results from the recent introduction of similar programs in Winnipeg22.