I 

113TH CONGRESS 

1ST SESSION H. R. 2288 

To amend the Internal Revenue Code of 1986 to modify the exclusion for 

transportation benefits. 

IN THE HOUSE OF REPRESENTATIVES 

JUNE 6, 2013 

Mr. GRIMM (for himself, Mr. BLUMENAUER, Mr. KING of New York, and Mr. 

MCGOVERN) introduced the following bill; which was referred to the Committee on Ways and Means 

A BILL 

To amend the Internal Revenue Code of 1986 to modify 

the exclusion for transportation benefits. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Commuter Parity Act 

5 of 2013’’. 

6 SEC. 2. QUALIFIED TRANSPORTATION FRINGE. 

7 (a) IN GENERAL.—Subsection (f) of section 132 of 

8 the Internal Revenue Code of 1986 is amended to read 

9 as follows: 

10 ‘‘(f) QUALIFIED TRANSPORTATION FRINGE.— 

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1 ‘‘(1) IN GENERAL.—For purposes of this sec2 tion, the term ‘qualified transportation fringe’ means 

3 any of the following provided by an employer to an 

4 employee: 

5 ‘‘(A) Transportation in a commuter high6 way vehicle if such transportation is in connec7 tion with travel between the employee’s resi8 dence and place of employment. 

9 ‘‘(B) Any transit pass. 

10 ‘‘(C) Qualified parking. 

11 ‘‘(D) Any qualified bicycle commuting re12 imbursement. 

13 ‘‘(2) LIMITATION ON EXCLUSION.—The amount 

14 of the fringe benefits which are provided by an em15 ployer to any employee and which may be excluded 

16 from gross income under subsection (a)(5) shall not 

17 exceed— 

18 ‘‘(A) $220 per month in the case of the ag19 gregate of the benefits described in subpara20 graphs (A) and (B) of paragraph (1), 

21 ‘‘(B) $220 per month in the case of quali22 fied parking, and 

23 ‘‘(C) $35 per month for qualified bicycle 

24 commuting reimbursement. 

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1 ‘‘(3) NO CONSTRUCTIVE RECEIPT.—No amount 

2 shall be included in the gross income of an employee 

3 solely because the employee may choose between any 

4 qualified transportation fringe and compensation 

5 which would otherwise be includible in gross income 

6 of such employee. 

7 ‘‘(4) DEFINITIONS.—For purposes of this sub8 section— 

9 ‘‘(A) TRANSIT PASS.—The term ‘transit 

10 pass’ means any pass, token, farecard, voucher, 

11 or similar item entitling a person to transpor12 tation (or transportation at a reduced price) if 

13 such transportation is— 

14 ‘‘(i) on mass transit facilities (whether 

15 or not publicly owned), or 

16 ‘‘(ii) provided by any person in the 

17 business of transporting persons for com18 pensation or hire if such transportation is 

19 provided in a vehicle meeting the require20 ments of subparagraph (B)(i). 

21 ‘‘(B) COMMUTER HIGHWAY VEHICLE.— 

22 The term ‘commuter highway vehicle’ means 

23 any highway vehicle— 

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1 ‘‘(i) the seating capacity of which is at 

2 least 6 adults (not including the driver), 

3 and 

4 ‘‘(ii) at least 80 percent of the mileage 

5 use of which can reasonably be expected to 

6 be— 

7 ‘‘(I) for purposes of transporting 

8 employees in connection with travel 

9 between their residences and their 

10 place of employment, and 

11 ‘‘(II) on trips during which the 

12 number of employees transported for 

such purposes is at least 1 13 ⁄2 of the 

14 adult seating capacity of such vehicle 

15 (not including the driver). 

16 ‘‘(C) QUALIFIED PARKING.—The term 

17 ‘qualified parking’ means parking provided to 

18 an employee on or near the business premises 

19 of the employer or on or near a location from 

20 which the employee commutes to work by trans21 portation described in subparagraph (A), in a 

22 commuter highway vehicle, or by carpool. Such 

23 term shall not include any parking on or near 

24 property used by the employee for residential 

25 purposes. 

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1 ‘‘(D) TRANSPORTATION PROVIDED BY EM2 PLOYER.—Transportation referred to in para3 graph (1)(A) shall be considered to be provided 

4 by an employer if such transportation is fur5 nished in a commuter highway vehicle operated 

6 by or for the employer. 

7 ‘‘(E) EMPLOYEE.—For purposes of this 

8 subsection, the term ‘employee’ includes an in9 dividual who is an employee within the meaning 

10 of section 401(c)(1). 

11 ‘‘(F) QUALIFIED BICYCLE COMMUTING RE12 IMBURSEMENT.—For the purposes of this sub13 section, the term ‘qualified bicycle commuting 

14 reimbursement’ means any employer reimburse15 ment for reasonable expenses incurred by the 

16 employee for the purchase of a bicycle and bicy17 cle improvements, repair, and storage, or 

18 bikesharing program, if such bicycle is regularly 

19 used for travel between the employee’s residence 

20 and place of employment. 

21 ‘‘(5) INFLATION ADJUSTMENT.— 

22 ‘‘(A) IN GENERAL.—In the case of any 

23 taxable year beginning in a calendar year after 

24 2014, the dollar amounts contained in paramstockstill on DSK4VPTVN1PROD with BILLS

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1 graph (2) shall be increased by an amount 

2 equal to— 

3 ‘‘(i) such dollar amount, multiplied by 

4 ‘‘(ii) the cost-of-living adjustment de5 termined under section 1(f)(3) for the cal6 endar year in which the taxable year be7 gins, by substituting ‘calendar year 2013’ 

8 for ‘calendar year 1992’. 

9 ‘‘(B) ROUNDING.—If any increase deter10 mined under subparagraph (A) is not a multiple 

11 of $5, such increase shall be rounded to the 

12 next lowest multiple of $5. 

13 ‘‘(6) COORDINATION WITH OTHER PROVI14 SIONS.—For purposes of this section, the terms 

15 ‘working condition fringe’ and ‘de minimis fringe’ 

16 shall not include any qualified transportation fringe 

17 (determined without regard to paragraph (2)).’’. 

18 (b) CONFORMING AMENDMENTS.—Sections 

19 403(b)(3)(B), 414(s)(2), 415(c)(3)(D)(ii) of such Code 

20 are each amended by striking ‘‘132(f)(4),’’. 

21 (c) EFFECTIVE DATE.—The amendments made by 

22 this section shall apply to taxable years beginning after 

23 December 31, 2013. 

Æ 

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