I 
114TH CONGRESS 
2D SESSION 
H. R. 6173 
To amend the Internal Revenue Code of 1986 to allow a refundable credit 
against tax for commuting mass transit costs. 
IN THE HOUSE OF REPRESENTATIVES 
SEPTEMBER 26, 2016 
Mrs. WATSON COLEMAN (for herself, Mr. BEYER, Mr. BISHOP of Georgia, Mr. 
BRENDAN F. BOYLE of Pennsylvania, Mr. CA´RDENAS, Ms. CLARKE of 
New York, Mr. CONYERS, Ms. FUDGE, Mr. GRIJALVA, Mr. GUTIE´RREZ, 
Mr. HONDA, Mr. ISRAEL, Ms. JACKSON LEE, Mr. JEFFRIES, Mr. MEEKS, 
Ms. MOORE, Mr. NADLER, Mrs. NAPOLITANO, Ms. NORTON, Ms. 
PLASKETT, Mr. SERRANO, Mr. TONKO, and Mr. DESAULNIER) intro-
duced the following bill; which was referred to the Committee on Ways 
and Means 
A BILL 
To amend the Internal Revenue Code of 1986 to allow a 
refundable credit against tax for commuting mass transit 
costs. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Transit Tax Credit 
Act of 2016’’. 
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SEC. 2. CREDIT AGAINST TAX FOR COMMUTING MASS 
TRANSIT COSTS. 
(a) IN GENERAL.—Subpart C of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of 
1986 is amended by inserting after section 36B the fol-
lowing new section: 
‘‘SEC. 36C. COMMUTING MASS TRANSIT COSTS. 
‘‘(a) IN GENERAL.—In the case of an individual, 
there shall be allowed as a credit against the tax imposed 
by this subtitle for such taxable year an amount equal to 
15 percent of the amount paid or incurred by the taxpayer 
during such taxable year for a transit pass (as defined 
in section 132(f)(5)(A)) for use by the taxpayer or the 
taxpayer’s spouse or dependents for travel between the 
residence and place of employment of such taxpayer, 
spouse, or dependent, as the case may be. 
‘‘(b) REQUIREMENT
OF EMPLOYMENT WITHOUT 
QUALIFIED TRANSPORTATION FRINGE.—No credit shall 
be allowable under this section with respect to transit 
passes for use by any individual unless— 
‘‘(1) such individual is an employee at any time 
during the taxable year, and 
‘‘(2) no amount is excludable from gross income 
as a qualified transportation fringe under section 
132 with respect to such individual for the taxable 
year. 
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‘‘(c) DOLLAR LIMITATION.— 
‘‘(1) IN GENERAL.—The credit allowed under 
subsection (a) with respect to transit passes for use 
by any individual for any taxable year shall not ex-
ceed $460. 
‘‘(2) ADJUSTMENT
FOR
INFLATION.—In the 
case of any taxable year beginning after December 
31, 2017, the dollar amount in paragraph (1) shall 
be increased by an amount equal to— 
‘‘(A) such dollar amount, multiplied by 
‘‘(B) the cost-of-living adjustment deter-
mined under section 1(f)(3) for the calendar 
year in which the taxable year begins, deter-
mined by substituting ‘calendar year 2016’ for 
‘calendar year 1992’ in subparagraph (B) 
thereof.’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
for subpart C of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 is amended by in-
serting after the item relating to section 36B the following 
new item: 
‘‘Sec. 36C. Commuting mass transit costs.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply with respect to taxable years begin-
ning after December 31, 2016. 
Æ 
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