I 

111TH CONGRESS 

2D SESSION H. R. 5129 

To amend the Internal Revenue Code of 1986 to treat carsharing and ridesharing reimbursement arrangements as qualified transportation fringe 

benefits. 

IN THE HOUSE OF REPRESENTATIVES 

APRIL 22, 2010 

Mr. HODES (for himself and Mr. CARNAHAN) 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 treat 

carsharing and ridesharing reimbursement arrangements 

as qualified transportation fringe 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. TREATMENT OF RIDESHARING REIMBURSE4 MENT ARRANGEMENTS AS QUALIFIED 

5 TRANSPORTATION FRINGE BENEFITS. 

6 (a) IN GENERAL.—Paragraph (1) of section 132(f) 

7 of the Internal Revenue Code of 1986 is amended by add8 ing at the end the following: 


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1 ‘‘(E) Any qualified carsharing or ride2 sharing reimbursement.’’. 

3 (b) LIMITATION ON EXCLUSION.—Subparagraph (A) 

4 of section 132(f)(2) of such Code is amended by striking 

5 ‘‘subparagraphs (A) and (B)’’ and inserting ‘‘subpara6 graphs (A), (B), and (E)’’. 

7 (c) QUALIFIED RIDESHARING REIMBURSEMENT DE8 FINED.—Paragraph (5) of section 132(f) is amended by 

9 adding at the end the following: 

10 ‘‘(G) QUALIFIED CARSHARING OR RIDE11 SHARING REIMBURSEMENT.— 

12 ‘‘(i) IN GENERAL.—The term ‘quali13 fied carsharing or ridesharing reimburse14 ment’ means, with respect to transpor15 tation provided in a qualified highway vehi16 cle, reimbursement described in clause (iv) 

17 under which a passenger, using an elec18 tronic transfer of funds or similar mecha19 nism, pays for costs associated with travel 

20 to and from a residence for the purposes of 

21 getting to and from a place of employment. 

22 ‘‘(ii) LIMITATION.—The amount taken 

23 into account under clause (i) with respect 

24 to any transportation shall not exceed the 

25 costs directly associated with travel to and 


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1 from a residence and a place of employ2 ment. 

3 ‘‘(iii) QUALIFIED HIGHWAY VEHI4 CLE.—The term ‘qualified highway vehicle’ 

5 means a highway vehicle which has a seat6 ing capacity of more than 1 but not more 

7 than 8 adults, excluding taxi-cabs, lim8 ousines, and other for-hire vehicles. 

9 ‘‘(iv) REIMBURSEMENT.—Reimburse10 ment is described in this clause if the reim11 bursement is by cash, voucher, or similar 

12 item. 

13 ‘‘(v) DETERMINATION OF COSTS.— 

14 For purposes of clause (i), costs shall be 

15 determined in accordance with regulations 

16 or other guidance prescribed by the Sec17 retary in consultation with the Secretary of 

18 Transportation. 

19 ‘‘(vi) SUBSTANTIATION.—Clause (i) 

20 shall not apply to any transportation un21 less the taxpayer substantiates the length 

22 of such transportation through the use of 

23 global positioning satellite technology or 

24 other means of substantiation as author25 ized by the Secretary.’’. 


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1 (d) COORDINATION WITH BICYCLE COMMUTING.— 

2 Subclause (II) of section 132(f)(5)(F)(iii) of such Code 

3 is amended by striking ‘‘or (C)’’ and inserting ‘‘(C), or 

4 (D)’’. 

5 (e) INFLATION ADJUSTMENT FREEZE.—Paragraph 

6 (6) of section 132(f) of such code is amended by adding 

7 at the end the following: 

8 ‘‘(C) INFLATION ADJUSTMENT FREEZE.— 

9 The inflation adjustment mentioned in this 

10 paragraph shall not be made for taxable years 

11 2011 through 2021.’’. 

12 (f) EFFECTIVE DATE.—The amendments made by 

13 this section shall apply to taxable years beginning after 

14 December 31, 2010. 

Æ 


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