I 
111TH CONGRESS 
1ST SESSION H. R. 2367 
To amend the Internal Revenue Code of 1986 to allow a credit to employers 
for reimbursing the expenses of employees who provide carpooling. 
IN THE HOUSE OF REPRESENTATIVES 
MAY 12, 2009 
Mr. HODES 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 allow a 
credit to employers for reimbursing the expenses of em-
ployees who provide carpooling. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. CARPOOLING REIMBURSEMENT CREDIT. 
(a) IN GENERAL.—Subpart D of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of 
1986 (relating to business-related credits) is amended by 
adding at the end the following new section: 
‘‘SEC. 45R. CARPOOLING REIMBURSEMENT CREDIT. 
‘‘(a) GENERAL RULE.—For purposes of section 38, 
the carpooling reimbursement credit determined under 
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this section for the taxable year is an amount equal to 
50 percent of the amount paid or incurred by the taxpayer 
during the taxable year to reimburse employees of the tax-
payer for qualified carpooling expenses. 
‘‘(b) LIMITATION.—The amount of reimbursement 
which may be taken into account under subsection (a) 
shall not exceed $250 with respect to any employee of the 
taxpayer for any taxable year. 
‘‘(c) QUALIFIED CARPOOLING EXPENSES.—For pur-
poses of this section— 
‘‘(1) IN GENERAL.—The term ‘qualifying car-
pooling expenses’ means the reasonable commuting 
expenses paid or incurred by an employee of the tax-
payer while providing a carpooling service. 
‘‘(2) REASONABLE
COMMUTING
EXPENSES.— 
The term ‘reasonable commuting expenses’ means 
reasonable expenses paid or incurred in connection 
with driving a passenger automobile between an in-
dividual’s residence and place of employment. 
‘‘(3) CARPOOLING
SERVICE.—The term ‘car-
pooling service’ means carrying as passengers (in ad-
dition to the driver) at least 2 individuals who are 
also traveling between such passenger’s residence 
and place of employment. 
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‘‘(d) NO DOUBLE BENEFIT.—No deduction or credit 
shall be allowed under any other provision of this chapter 
with respect to the amount of the credit determined under 
this section. 
‘‘(e) PAYMENTS
TO STATE
AND LOCAL GOVERN-
MENTS.—The Secretary shall pay to State and local gov-
ernments the amount of the carpooling reimbursement 
credit that would be determined under subsection (a) if 
such State or local government were a taxpayer. For pur-
poses of section 1324 of title 31, United States Code, such 
payments shall be treated as a refunding of internal rev-
enue collections to which subsection (b) of such section 
does not apply.’’. 
(b) CREDIT TO BE PART OF GENERAL BUSINESS 
CREDIT.—Subsection (b) of section 38 of such Code (re-
lating to general business credit) is amended by striking 
‘‘plus’’ at the end of paragraph (34), by striking the period 
at the end of paragraph (35) and inserting ‘‘, plus’’, and 
by adding at the end the following new paragraph: 
‘‘(36) the carpooling reimbursement credit de-
termined under section 45R(a).’’. 
(c) CLERICAL AMENDMENT.—The table of sections 
for subpart D of part IV of subchapter A of chapter 1 
of such Code is amended by inserting after the item relat-
ing to section 45Q the following new item: 
‘‘Sec. 45R. Carpooling reimbursement credit.’’. 
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(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
the date of the enactment of this Act. 
Æ 
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