I 
111TH CONGRESS 
2D SESSION 
H. R. 5129 
To amend the Internal Revenue Code of 1986 to treat carsharing and ride-
sharing 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 Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. TREATMENT OF RIDESHARING REIMBURSE-
MENT 
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 add-
ing at the end the following: 
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‘‘(E) Any qualified carsharing or ride-
sharing 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 ‘‘subpara-
graphs (A), (B), and (E)’’. 
(c) QUALIFIED RIDESHARING REIMBURSEMENT DE-
FINED.—Paragraph (5) of section 132(f) is amended by 
adding at the end the following: 
‘‘(G) QUALIFIED
CARSHARING
OR
RIDE-
SHARING REIMBURSEMENT.— 
‘‘(i) IN GENERAL.—The term ‘quali-
fied carsharing or ridesharing reimburse-
ment’ means, with respect to transpor-
tation provided in a qualified highway vehi-
cle, reimbursement described in clause (iv) 
under which a passenger, using an elec-
tronic transfer of funds or similar mecha-
nism, 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 
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from a residence and a place of employ-
ment. 
‘‘(iii) QUALIFIED
HIGHWAY
VEHI-
CLE.—The term ‘qualified highway vehicle’ 
means a highway vehicle which has a seat-
ing capacity of more than 1 but not more 
than 8 adults, excluding taxi-cabs, lim-
ousines, and other for-hire vehicles. 
‘‘(iv) REIMBURSEMENT.—Reimburse-
ment is described in this clause if the reim-
bursement 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 Sec-
retary in consultation with the Secretary of 
Transportation. 
‘‘(vi) SUBSTANTIATION.—Clause (i) 
shall not apply to any transportation un-
less the taxpayer substantiates the length 
of such transportation through the use of 
global positioning satellite technology or 
other means of substantiation as author-
ized by the Secretary.’’. 
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(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. 
Æ 
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