To amend the Internal Revenue Code of 1986 to improve commuting and transportation options.

Summary: Commuter Relief Act - Amends the Internal Revenue Code to: (1) establish a uniform monthly benefit amount of $200 for all types of transportation fringe benefits (commuting reimbursements, transit passes, parking, and bicycle commuting reimbursements) and allow a cost-of-living adjustment for such benefit amount beginning after 2012; (2) make self-employed individuals eligible for transit pass fringe benefits; (3) require certain employers who have an average of 50 employees during the calendar year to offer a parking cash-out program under which an employer offers employees a cash allowance equal to the regular amount paid by the employer for parking; (4) allow a 10% business tax credit for investment in commuter vans with a seating capacity of at least 7, but not more than 15, adults that are placed in service before January 1, 2019; and (5) permit employees to exclude from gross income for income tax purposes transit passes and reimbursements of bicycle commuting expenses in the same month.

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Commuter Relief 
Act''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Increased uniform dollar limitation for all types of 
                            transportation fringe benefits.
Sec. 3. Eligibility of self-employed individuals to receive transit 
                            fringe benefits.
Sec. 4. Parking cash-out programs.
Sec. 5. Vanpool investment credit.
Sec. 6. Employees may receive transit passes and reimbursement of 
                            bicycle commuting expenses as excludable 
                            fringe benefits for the same month.

SEC. 2. INCREASED UNIFORM DOLLAR LIMITATION FOR ALL TYPES OF 
              TRANSPORTATION FRINGE BENEFITS.

    (a) In General.--Paragraph (2) of section 132(f) of the Internal 
Revenue Code of 1986 (relating to limitation on exclusion) is amended--
            (1) by striking ``$100'' in subparagraph (A) and inserting 
        ``$200'', and
            (2) by striking ``$175'' in subparagraph (B) and inserting 
        ``$200''.
    (b) Inflation Adjustment Conforming Amendments.--Subparagraph (A) 
of section 132(f)(6) of the Internal Revenue Code of 1986 (relating to 
inflation adjustment) is amended--
            (1) by striking the last sentence,
            (2) by striking ``1999'' and inserting ``2012'', and
            (3) by striking ``1998'' and inserting ``2011''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2011.

SEC. 3. ELIGIBILITY OF SELF-EMPLOYED INDIVIDUALS TO RECEIVE TRANSIT 
              FRINGE BENEFITS.

    (a) In General.--Subparagraph (E) of section 132(f)(5) is amended--
            (1) by striking ``For purposes of this subsection, the 
        term'' and inserting the following:
                            ``(i) In general.--Except as provided in 
                        clause (ii), the term'', and
            (2) by adding at the end the following new clause:
    ``(ii) Self-Employed Individuals Eligible for Transit Pass Fringe 
Benefit.--For purposes of paragraph (1)(B), such term includes an 
individual who is an employee within the meaning of section 
401(c)(1).''.
    (b) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2011.

SEC. 4. PARKING CASH-OUT PROGRAMS.

    (a) In General.--Subparagraph (C) of section 132(f)(5) is amended--
            (1) by striking ``The term'' and inserting the following:
                            ``(i) In general.--The term''.
            (2) by adding at the end of clause (i), as amended by 
        paragraph (1), the following: ``Such term shall not include any 
        parking with respect to any specified employer unless such 
        employer establishes a parking cash-out program.'', and
            (3) by adding at the end the following new clauses:
                            ``(ii) Specified employer.--For purposes of 
                        this subparagraph, the term `specified 
                        employer' means any employer who--
                                    ``(I) employs on average 50 or more 
                                employees during the calendar year,
                                    ``(II) leases the parking 
                                facilities referred to in clause (i),
                                    ``(III) can separately determine 
                                the amount paid per parking space 
                                leased, and
                                    ``(IV) can reduce the number of 
                                parking space leased (on a basis not 
                                less frequently than monthly) without 
                                penalty.
                            ``(iii) Parking cash-out program.--For 
                        purposes of this subparagraph, the term 
                        `parking cash-out program' means a program 
                        established by the employer under which--
                                    ``(I) the employer offers employees 
                                a cash allowance equal to the regular 
                                amount paid by the employer for parking 
                                for a single employee under clause (i) 
                                in lieu of the parking referred to in 
                                clause (i), and
                                    ``(II) any employee electing the 
                                cash allowance shall certify to the 
                                employer that the employee will comply 
                                with guidelines established by the 
                                employer to avoid neighborhood parking 
                                problems and violation of such 
                                guidelines are enforced by the employer 
                                by termination of eligibility of such 
                                employee for such cash allowance and 
                                employer sponsored parking.''.
    (b) Effective Date.--The amendments made by this section shall 
apply to parking provided during calendar years beginning after 
December 31, 2011.

SEC. 5. VANPOOL INVESTMENT CREDIT.

    (a) In General.--Subpart D of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 is amended by adding at the end 
the following new section:

``SEC. 45S. QUALIFYING VANPOOL INVESTMENT CREDIT.

    ``(a) General Rule.--For purposes of section 38, the qualifying 
vanpool investment credit for any taxable year is an amount equal to 10 
percent of the basis of a qualified commuter van placed in service by 
the taxpayer during the taxable year.
    ``(b) Qualified Commuter Van.--For purposes of this section, the 
term `qualified commuter van' means a vehicle--
            ``(1) the seating capacity of which is at least 7, but not 
        more than 15, adults (not including the driver),
            ``(2) which has a 3-year class life,
            ``(3) at least 80 percent of the mileage use of which can 
        reasonably be expected to be for transportation described in 
        section 132(f)(1)(A),
            ``(4) with respect to which depreciation (or amortization 
        in lieu of depreciation) is allowable, and
            ``(5) is originally placed in service by the taxpayer 
        before January 1, 2019.
    ``(c) Leasing Exception.--
            ``(1) In general.--In the case of an employer who enters 
        into a lease with an unrelated person for the provision of 
        transportation described in section 132(f)(1)(A) and who makes 
        an election under this subsection for a taxable year (in such 
        form and manner as the Secretary may by regulation prescribe), 
        in lieu of the amount determined under subsection (a), the 
        qualifying vanpool investment credit with respect to the 
        taxpayer for the taxable year shall be an amount equal to 10 
        percent of the amounts paid or incurred by the employer for the 
        taxable year pursuant to such lease for the provision of such 
        transportation.
            ``(2) Related persons.--All persons treated as a single 
        employer under subsection (a) or (b) of section 52 shall be 
        treated as related persons for purposes of this subsection.
            ``(3) Termination.--This subsection shall not apply to any 
        amounts paid or incurred after December 31, 2014.
    ``(d) Basis Reduction.--For purposes of this subtitle, the basis of 
any property for which a credit is allowable under subsection (a) shall 
be reduced by the amount of such credit.''.
    (b) Credit Treated as Part of General Business Credit.--Section 
38(b) of such Code is amended by striking ``plus'' at the end of 
paragraph (35), by striking the period at the end of paragraph (36) and 
inserting ``, plus'', and by adding at the end of following new 
paragraph:
            ``(37) the qualifying vanpool investment credit determined 
        under section 45S(a).''.
    (c) Conforming Amendment.--Subsection (a) of section 1016 of such 
Code is amended by striking ``and'' at the end of paragraph (36), by 
striking the period at the end of paragraph (37) and inserting ``, 
and'', and by adding at the end the following new paragraph:
            ``(38) to the extent provided in section 45S(e), in the 
        case of amounts with respect to which a credit has been allowed 
        under section 45S.''
    (d) Clerical Amendment.--The table of sections for subpart D of 
part IV of subchapter A of chapter 1 of such Code is amended by adding 
at the end the following new item:

``Sec. 45S. Qualifying vanpool investment credit.''.
    (e) Effective Date.--The amendments made by this section shall 
apply to property placed in service, and amounts paid or incurred, 
after December 31, 2011.

SEC. 6. EMPLOYEES MAY RECEIVE TRANSIT PASSES AND REIMBURSEMENT OF 
              BICYCLE COMMUTING EXPENSES AS EXCLUDABLE FRINGE BENEFITS 
              FOR THE SAME MONTH.

    (a) In General.--Subclause (II) of section 132(f)(5)(F)(iii) of the 
Internal Revenue Code of 1986 (defining qualified bicycling month) is 
amended by striking ``, (B),''.
    (b) Limitation.--Subparagraph (A) of section 132(f)(2) of such Code 
(relating to limitation on exclusions) is amended by striking ``and 
(B)'' and inserting ``, (B), and (D)''.
    (c) Repeal of Constructive Receipt Treatment of Bicycle Commuting 
Reimbursements.--Paragraph (4) of section 132(f) of such Code is 
amended by striking ``(other than a qualified bicycle commuting 
reimbursement)''.
    (d) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2011.