On September 27, 2023, the Postal Rate Commission approved the First Class and Marketing Mail Growth Incentives the USPS filed on August 11, 2023. As with anything with the USPS, the details are important. Here’s what we know so far:
Who is eligible?
All mail owners will be eligible. However, the incentive starts after the first 1,000,000 mail pieces presented to the USPS in 2024. And that threshold is separate for First Class and Marketing Mail.
What types of mail are eligible?
First-Class Presort Letters, Cards or Flats (NOT parcels or priority mail)
Marketing Mail Letters, Flats, Parcels, including High Density/Saturation and Carrier Route
How will the incentive be earned?
For Mailers that mail LESS than the 1,000,000-mail piece threshold in 2023:
The incentive would start once their 2024 volume exceeded 1,000,000.
For Mailers that mail MORE than 1,000,000 mail pieces in 2023:
The incentive applies to pieces mailed over the 2023 volume.
For example, if a mail owner mailed 1,500,000 mail pieces in 2023, the incentive would start once their 2024 volume exceeds 1,500,000.
How will the incentive be calculated?
To quote the filing: “Calculating the credits earned is somewhat complex.”
Conceptually, this is what the USPS will do:
| 2023 Volume | 2024 Volume | Incentive Volume | Average 2024 Postage Rate | Incentive Per Piece (30%) | Incentive Value |
| 1,500,000 | 2,100,000 | 600,000 | $.4915 | $.14745 | $88,470 |
How will it be paid out?
When the mail owner registers for the incentive, they will select a permit to assign the incentive to. The incentive will appear on the Mail Owner’s Permit July 2024, October 2024 and either January or February 2025. The mail owner will have until December 2025 to spend these funds.
If you would like more information…
As the Incentive registration date nears in November, we will have additional information available here to sign up with the USPS for this incentive.
