‘‘(1) IN GENERAL.—For purposes of this sec-
tion, the term ‘qualified transportation fringe’ means 
any of the following provided by an employer to an 
employee: 
‘‘(A) Transportation in a commuter high-
way vehicle if such transportation is in connec-
tion with travel between the employee’s resi-
dence and place of employment. 
‘‘(B) Any transit pass. 
‘‘(C) Qualified parking. 
‘‘(D) Any qualified bicycle commuting re-
imbursement. 
‘‘(2) LIMITATION ON EXCLUSION.—The amount 
of the fringe benefits which are provided by an em-
ployer to any employee and which may be excluded 
from gross income under subsection (a)(5) shall not 
exceed— 
‘‘(A) $220 per month in the case of the ag-
gregate of the benefits described in subpara-
graphs (A) and (B) of paragraph (1), 
‘‘(B) $220 per month in the case of quali-
fied parking, and 
‘‘(C) $35 per month for qualified bicycle 
commuting reimbursement. 
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‘‘(3) NO CONSTRUCTIVE RECEIPT.—No amount 
shall be included in the gross income of an employee 
solely because the employee may choose between any 
qualified transportation fringe and compensation 
which would otherwise be includible in gross income 
of such employee. 
‘‘(4) DEFINITIONS.—For purposes of this sub-
section— 
‘‘(A) TRANSIT
PASS.—The term ‘transit 
pass’ means any pass, token, farecard, voucher, 
or similar item entitling a person to transpor-
tation (or transportation at a reduced price) if 
such transportation is— 
‘‘(i) on mass transit facilities (whether 
or not publicly owned), or 
‘‘(ii) provided by any person in the 
business of transporting persons for com-
pensation or hire if such transportation is 
provided in a vehicle meeting the require-
ments of subparagraph (B)(i). 
‘‘(B) COMMUTER
HIGHWAY
VEHICLE.— 
The term ‘commuter highway vehicle’ means 
any highway vehicle— 
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‘‘(i) the seating capacity of which is at 
least 6 adults (not including the driver), 
and 
‘‘(ii) at least 80 percent of the mileage 
use of which can reasonably be expected to 
be— 
‘‘(I) for purposes of transporting 
employees in connection with travel 
between their residences and their 
place of employment, and 
‘‘(II) on trips during which the 
number of employees transported for 
such purposes is at least 1⁄2 of the 
adult seating capacity of such vehicle 
(not including the driver). 
‘‘(C) QUALIFIED
PARKING.—The term 
‘qualified parking’ means parking provided to 
an employee on or near the business premises 
of the employer or on or near a location from 
which the employee commutes to work by trans-
portation described in subparagraph (A), in a 
commuter highway vehicle, or by carpool. Such 
term shall not include any parking on or near 
property used by the employee for residential 
purposes. 
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‘‘(D) TRANSPORTATION PROVIDED BY EM-
PLOYER.—Transportation referred to in para-
graph (1)(A) shall be considered to be provided 
by an employer if such transportation is fur-
nished in a commuter highway vehicle operated 
by or for the employer. 
‘‘(E) EMPLOYEE.—For purposes of this 
subsection, the term ‘employee’ includes an in-
dividual who is an employee within the meaning 
of section 401(c)(1). 
‘‘(F) QUALIFIED BICYCLE COMMUTING RE-
IMBURSEMENT.—For the purposes of this sub-
section, the term ‘qualified bicycle commuting 
reimbursement’ means any employer reimburse-
ment for reasonable expenses incurred by the 
employee for the purchase of a bicycle and bicy-
cle improvements, repair, and storage, or 
bikesharing program, if such bicycle is regularly 
used for travel between the employee’s residence 
and place of employment. 
‘‘(5) INFLATION ADJUSTMENT.— 
‘‘(A) IN
GENERAL.—In the case of any 
taxable year beginning in a calendar year after 
2014, the dollar amounts contained in para-
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graph (2) shall be increased by an amount 
equal to— 
‘‘(i) such dollar amount, multiplied by 
‘‘(ii) the cost-of-living adjustment de-
termined under section 1(f)(3) for the cal-
endar year in which the taxable year be-
gins, by substituting ‘calendar year 2013’ 
for ‘calendar year 1992’. 
‘‘(B) ROUNDING.—If any increase deter-
mined under subparagraph (A) is not a multiple 
of $5, such increase shall be rounded to the 
next lowest multiple of $5. 
‘‘(6) COORDINATION
WITH
OTHER
PROVI-
SIONS.—For purposes of this section, the terms 
‘working condition fringe’ and ‘de minimis fringe’ 
shall not include any qualified transportation fringe 
(determined without regard to paragraph (2)).’’. 
(b) 
CONFORMING
AMENDMENTS.—Sections 
403(b)(3)(B), 414(s)(2), 415(c)(3)(D)(ii) of such Code 
are each amended by striking ‘‘132(f)(4),’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2013. 
Æ 
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