The United States Postal Service (USPS) is proposing two new incentives for mail owners to spur mail growth by way of earned postage credits. Details are being finalized and are pending Postal Regulatory Commission approval.
Marketing Mail Incentive
Beginning January 2024, mailers will earn postage credits on all mail pieces that exceed their USPS Fiscal Year 2023 totals. While approval is still required, a 30% Postage Credit has been proposed to the PRC.
A baseline total will be provided to the Mail Owner by the USPS that will establish the threshold required to begin receiving credit. For mailers who mailed less than 1MM pieces in FY 2023, there will be a minimum 1MM piece threshold to qualify in 2024. Qualifying mail pieces include letters, flats, and parcels and totals of each category count towards the target minimums.
All credits earned throughout 2024 can be redeemed beginning July of 2024 through December of 2025.
First Class Mail Incentive
The same time frames, mail levels, and credit percentage as the Marketing Mail Incentive apply to the First Class Mail Incentive.
Qualifying mail pieces include postcards, letters, and flats.
For both incentives, credits earned can only be applied to the same class of mail, and Marketing Mail and First Class Mail totals cannot be combined to reach target minimum piece counts.
Registration to qualify
Once finalized and approved by the Postal Regulatory Commission, registration for both programs will begin in November of this year.
We will issue additional details as they become available.
The official USPS announcement can be read here.