FAVR Eligibility
Quick definition
FAVR eligibility refers to the requirements employers, employees, and vehicles must meet for qualifying FAVR reimbursements to be tax-free.
Full definition
FAVR eligibility covers the rules a company and its participating drivers must follow for reimbursements to be tax-free. These rules address the number and roles of participating employees, their business mileage, and their vehicles.
Key requirements include at least five participating employees, a majority who aren’t management employees, and documented annual business mileage of at least 5,000 miles or 80% of the program’s projected business mileage, whichever is greater.
Employees’ vehicles must also meet requirements for original cost, model year, and insurance coverage.
Get started with TripLog
Create account