I 
112TH CONGRESS 
1ST SESSION H. R. 1825 
To amend the Internal Revenue Code of 1986 to improve commuting and 
transportation options. 
IN THE HOUSE OF REPRESENTATIVES 
MAY 11, 2011 
Mr. BLUMENAUER (for himself, Mrs. CAPPS, Mr. CONNOLLY of Virginia, Mr. 
FILNER, Ms. HIRONO, Mr. KUCINICH, Mr. MCGOVERN, Mr. GEORGE 
MILLER of California, Mr. MORAN, Mr. SIRES, Mr. POLIS, and Mr. RAN-
GEL) 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 improve 
commuting and transportation options. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Commuter Relief Act’’. 
(b) TABLE OF CONTENTS.—The table of contents for 
this Act is as follows: 
Sec. 1. Short title; table of contents. 
Sec. 2. Increased uniform dollar limitation for all types of transportation fringe 
benefits. 
Sec. 3. Eligibility of self-employed individuals to receive transit fringe benefits. 
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Sec. 4. Parking cash-out programs. 
Sec. 5. Vanpool investment credit. 
Sec. 6. Employees may receive transit passes and reimbursement of bicycle 
commuting expenses as excludable fringe benefits for the same 
month. 
SEC. 2. INCREASED UNIFORM DOLLAR LIMITATION FOR 
ALL TYPES OF TRANSPORTATION FRINGE 
BENEFITS. 
(a) IN GENERAL.—Paragraph (2) of section 132(f) 
of the Internal Revenue Code of 1986 (relating to limita-
tion on exclusion) is amended— 
(1) by striking ‘‘$100’’ in subparagraph (A) 
and inserting ‘‘$200’’, and 
(2) by striking ‘‘$175’’ in subparagraph (B) 
and inserting ‘‘$200’’. 
(b) INFLATION ADJUSTMENT CONFORMING AMEND-
MENTS.—Subparagraph (A) of section 132(f)(6) of the In-
ternal Revenue Code of 1986 (relating to inflation adjust-
ment) is amended— 
(1) by striking the last sentence, 
(2) by striking ‘‘1999’’ and inserting ‘‘2012’’, 
and 
(3) by striking ‘‘1998’’ and inserting ‘‘2011’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2011. 
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SEC. 3. ELIGIBILITY OF SELF-EMPLOYED INDIVIDUALS TO 
RECEIVE TRANSIT FRINGE BENEFITS. 
(a) IN GENERAL.—Subparagraph (E) of section 
132(f)(5) is amended— 
(1) by striking ‘‘For purposes of this sub-
section, the term’’ and inserting the following: 
‘‘(i) IN
GENERAL.—Except as pro-
vided in clause (ii), the term’’, and 
(2) by adding at the end the following new 
clause: 
‘‘(ii) SELF-EMPLOYED INDIVIDUALS ELIGIBLE FOR 
TRANSIT PASS FRINGE BENEFIT.—For purposes of para-
graph (1)(B), such term includes an individual who is an 
employee within the meaning of section 401(c)(1).’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2011. 
SEC. 4. PARKING CASH-OUT PROGRAMS. 
(a) IN GENERAL.—Subparagraph (C) of section 
132(f)(5) is amended— 
(1) by striking ‘‘The term’’ and inserting the 
following: 
‘‘(i) IN GENERAL.—The term’’. 
(2) by adding at the end of clause (i), as 
amended by paragraph (1), the following: ‘‘Such 
term shall not include any parking with respect to 
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any specified employer unless such employer estab-
lishes a parking cash-out program.’’, and 
(3) by adding at the end the following new 
clauses: 
‘‘(ii) 
SPECIFIED
EMPLOYER.—For 
purposes of this subparagraph, the term 
‘specified employer’ means any employer 
who— 
‘‘(I) employs on average 50 or 
more employees during the calendar 
year, 
‘‘(II) leases the parking facilities 
referred to in clause (i), 
‘‘(III) can separately determine 
the amount paid per parking space 
leased, and 
‘‘(IV) can reduce the number of 
parking space leased (on a basis not 
less frequently than monthly) without 
penalty. 
‘‘(iii) 
PARKING
CASH-OUT
PRO-
GRAM.—For purposes of this subpara-
graph, the term ‘parking cash-out pro-
gram’ means a program established by the 
employer under which— 
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‘‘(I) the employer offers employ-
ees a cash allowance equal to the reg-
ular amount paid by the employer for 
parking for a single employee under 
clause (i) in lieu of the parking re-
ferred to in clause (i), and 
‘‘(II) any employee electing the 
cash allowance shall certify to the em-
ployer that the employee will comply 
with guidelines established by the em-
ployer to avoid neighborhood parking 
problems and violation of such guide-
lines are enforced by the employer by 
termination of eligibility of such em-
ployee for such cash allowance and 
employer sponsored parking.’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to parking provided during cal-
endar years beginning after December 31, 2011. 
SEC. 5. VANPOOL INVESTMENT CREDIT. 
(a) IN GENERAL.—Subpart D of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of 
1986 is amended by adding at the end the following new 
section: 
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‘‘SEC. 45S. QUALIFYING VANPOOL INVESTMENT CREDIT. 
‘‘(a) GENERAL RULE.—For purposes of section 38, 
the qualifying vanpool investment credit for any taxable 
year is an amount equal to 10 percent of the basis of a 
qualified commuter van placed in service by the taxpayer 
during the taxable year. 
‘‘(b) QUALIFIED COMMUTER VAN.—For purposes of 
this section, the term ‘qualified commuter van’ means a 
vehicle— 
‘‘(1) the seating capacity of which is at least 7, 
but not more than 15, adults (not including the driv-
er), 
‘‘(2) which has a 3-year class life, 
‘‘(3) at least 80 percent of the mileage use of 
which can reasonably be expected to be for transpor-
tation described in section 132(f)(1)(A), 
‘‘(4) with respect to which depreciation (or am-
ortization in lieu of depreciation) is allowable, and 
‘‘(5) is originally placed in service by the tax-
payer before January 1, 2019. 
‘‘(c) LEASING EXCEPTION.— 
‘‘(1) IN GENERAL.—In the case of an employer 
who enters into a lease with an unrelated person for 
the provision of transportation described in section 
132(f)(1)(A) and who makes an election under this 
subsection for a taxable year (in such form and 
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manner as the Secretary may by regulation pre-
scribe), in lieu of the amount determined under sub-
section (a), the qualifying vanpool investment credit 
with respect to the taxpayer for the taxable year 
shall be an amount equal to 10 percent of the 
amounts paid or incurred by the employer for the 
taxable year pursuant to such lease for the provision 
of such transportation. 
‘‘(2) RELATED PERSONS.—All persons treated 
as a single employer under subsection (a) or (b) of 
section 52 shall be treated as related persons for 
purposes of this subsection. 
‘‘(3) TERMINATION.—This subsection shall not 
apply to any amounts paid or incurred after Decem-
ber 31, 2014. 
‘‘(d) BASIS REDUCTION.—For purposes of this sub-
title, the basis of any property for which a credit is allow-
able under subsection (a) shall be reduced by the amount 
of such credit.’’. 
(b) CREDIT TREATED AS PART OF GENERAL BUSI-
NESS CREDIT.—Section 38(b) of such Code is amended 
by striking ‘‘plus’’ at the end of paragraph (35), by strik-
ing the period at the end of paragraph (36) and inserting 
‘‘, plus’’, and by adding at the end of following new para-
graph: 
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‘‘(37) the qualifying vanpool investment credit 
determined under section 45S(a).’’. 
(c) CONFORMING AMENDMENT.—Subsection (a) of 
section 1016 of such Code is amended by striking ‘‘and’’ 
at the end of paragraph (36), by striking the period at 
the end of paragraph (37) and inserting ‘‘, and’’, and by 
adding at the end the following new paragraph: 
‘‘(38) to the extent provided in section 45S(e), 
in the case of amounts with respect to which a credit 
has been allowed under section 45S.’’ 
(d) CLERICAL AMENDMENT.—The table of sections 
for subpart D of part IV of subchapter A of chapter 1 
of such Code is amended by adding at the end the fol-
lowing new item: 
‘‘Sec. 45S. Qualifying vanpool investment credit.’’. 
(e) EFFECTIVE DATE.—The amendments made by 
this section shall apply to property placed in service, and 
amounts paid or incurred, after December 31, 2011. 
SEC. 6. EMPLOYEES MAY RECEIVE TRANSIT PASSES AND 
REIMBURSEMENT OF BICYCLE COMMUTING 
EXPENSES AS EXCLUDABLE FRINGE BENE-
FITS FOR THE SAME MONTH. 
(a) 
IN
GENERAL.—Subclause 
(II) 
of 
section 
132(f)(5)(F)(iii) of the Internal Revenue Code of 1986 
(defining qualified bicycling month) is amended by strik-
ing ‘‘, (B),’’. 
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(b) LIMITATION.—Subparagraph (A) of section 
132(f)(2) of such Code (relating to limitation on exclu-
sions) is amended by striking ‘‘and (B)’’ and inserting ‘‘, 
(B), and (D)’’. 
(c) REPEAL
OF CONSTRUCTIVE RECEIPT TREAT-
MENT
OF BICYCLE COMMUTING REIMBURSEMENTS.— 
Paragraph (4) of section 132(f) of such Code is amended 
by striking ‘‘(other than a qualified bicycle commuting re-
imbursement)’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2011. 
Æ 
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