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[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5129 Introduced in House (IH)]

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.

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

SECTION 1. TREATMENT OF RIDESHARING REIMBURSEMENT ARRANGEMENTS AS 
              QUALIFIED TRANSPORTATION FRINGE BENEFITS.

    (a) In General.--Paragraph (1) of section 132(f) of the Internal 
Revenue Code of 1986 is amended by adding at the end the following:
                    ``(E) Any qualified carsharing or ridesharing 
                reimbursement.''.
    (b) Limitation on Exclusion.--Subparagraph (A) of section 132(f)(2) 
of such Code is amended by striking ``subparagraphs (A) and (B)'' and 
inserting ``subparagraphs (A), (B), and (E)''.
    (c) Qualified Ridesharing Reimbursement Defined.--Paragraph (5) of 
section 132(f) is amended by adding at the end the following:
                    ``(G) Qualified carsharing or ridesharing 
                reimbursement.--
                            ``(i) In general.--The term `qualified 
                        carsharing or ridesharing reimbursement' means, 
                        with respect to transportation provided in a 
                        qualified highway vehicle, reimbursement 
                        described in clause (iv) under which a 
                        passenger, using an electronic transfer of 
                        funds or similar mechanism, pays for costs 
                        associated with travel to and from a residence 
                        for the purposes of getting to and from a place 
                        of employment.
                            ``(ii) Limitation.--The amount taken into 
                        account under clause (i) with respect to any 
                        transportation shall not exceed the costs 
                        directly associated with travel to and from a 
                        residence and a place of employment.
                            ``(iii) Qualified highway vehicle.--The 
                        term `qualified highway vehicle' means a 
                        highway vehicle which has a seating capacity of 
                        more than 1 but not more than 8 adults, 
                        excluding taxi-cabs, limousines, and other for-
                        hire vehicles.
                            ``(iv) Reimbursement.--Reimbursement is 
                        described in this clause if the reimbursement 
                        is by cash, voucher, or similar item.
                            ``(v) Determination of costs.--For purposes 
                        of clause (i), costs shall be determined in 
                        accordance with regulations or other guidance 
                        prescribed by the Secretary in consultation 
                        with the Secretary of Transportation.
                            ``(vi) Substantiation.--Clause (i) shall 
                        not apply to any transportation unless the 
                        taxpayer substantiates the length of such 
                        transportation through the use of global 
                        positioning satellite technology or other means 
                        of substantiation as authorized by the 
                        Secretary.''.
    (d) Coordination With Bicycle Commuting.--Subclause (II) of section 
132(f)(5)(F)(iii) of such Code is amended by striking ``or (C)'' and 
inserting ``(C), or (D)''.
    (e) Inflation Adjustment Freeze.--Paragraph (6) of section 132(f) 
of such code is amended by adding at the end the following:
                    ``(C) Inflation adjustment freeze.--The inflation 
                adjustment mentioned in this paragraph shall not be 
                made for taxable years 2011 through 2021.''.
    (f) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2010.
                                 <all>
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