To amend the Internal Revenue Code of 1986 to treat certain ride-sharing services provided by transportation network companies as excludable transportation fringe benefits, and for other purposes.

Bill: 114-hr-5647
Sponsor: full_name: Rep. Meadows, Mark [R-NC-11]
Introduced: 2016-07-06
Policy area: Taxation
Subjects: Commuting

District of Columbia

Employee benefits and pensions

Income tax exclusion

Maryland

Public transit

Transportation costs

Transportation safety and security

Virginia
Latest action: action_date: 2016-07-06
text: Referred to the Committee on Ways and Means, and in addition to the Committee on Oversight and Government Reform, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.

Summaries:
action_date: 2016-07-06
action_desc: Introduced in House
text: <p>This bill amends the Internal Revenue Code to treat any qualified ride-sharing service provided after the date of the enactment of this bill and before June 1, 2017, as a qualified transportation fringe benefit that is excluded from an employee's gross income. </p> <p>A qualified ride-sharing service is transportation provided through a transportation network company if: </p> <ul> <li> the transportation is in connection with travel between the employee's residence and place of employment, both of which are located within the Washington Metropolitan Area; </li> <li> the employee is an employee of a government agency and receives transit benefits from the agency; and </li> <li> the transportation is through the use of services that utilize innovative mobility technologies to provide alternatives to driving alone. </li> </ul> <p>The benefit is subject to a limit on the aggregate amount of certain transportation fringe benefits that may be excluded from gross income. </p> <p>During the period beginning with the enactment of this bill and ending on the earlier of June 1, 2017, or the completion of the Washington Metropolitan Area Transit Authority's maintenance program (commonly referred to as &quot;SafeTrack&quot;), agencies that provide transit benefits to employees must provide benefits for using transportation network companies within the Washington Metropolitan Area in the same manner as benefits are provided for using public transportation services in the area. </p>

tv_txt: I 114th CONGRESS 2d Session H. R. 5647 IN THE HOUSE OF REPRESENTATIVES July 6, 2016 Mr. Meadows (for himself and Mr. Connolly ) introduced the following bill; which was referred to the Committee on Ways and Means , and in addition to the Committee on Oversight and Government Reform , for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned A BILL To amend the Internal Revenue Code of 1986 to treat certain ride-sharing services provided by transportation network companies as excludable transportation fringe benefits, and for other purposes.

1. Findings Congress finds the following: (1) The Washington Metropolitan Area Transit Authority ( WMATA ) provides approximately 2.3 million Metrorail and Metrobus trips per year across the National Capital Region to Federal employees, commuters, and millions of visitors to the Nation’s capital. (2) Approximately 40 percent of WMATA peak-hour commuters are Federal employees. (3) WMATA began building its rail system in 1969 and currently serves 91 stations and has 117 miles of track. (4) The Federal Transit Administration ( FTA ) and the National Transportation Safety Board ( NTSB ) have found significant safety concerns resulting from a backlog of deferred maintenance. (5) By closing the system earlier on weekends and expanding weekday maintenance, SafeTrack will address FTA and NTSB safety recommendations and deferred maintenance backlogs. (6) The plan includes 15 Safety Surges with around-the-clock single tracking or segment shutdowns that will impact rush hour commutes. (7) SafeTrack is scheduled to conclude in March 2017. (8) During the course of SafeTrack, WMATA is encouraging customers to utilize other commuting options, including ride-sharing services. (9) The Federal Government, which is negatively affected when its employees cannot easily commute to and from work, has an interest in assisting employees with alternate commuting options during the course of SafeTrack. 2. Ride-sharing services provided by a transportation network company (a) In general Paragraph (1) of section 132(f) of the Internal Revenue Code of 1986 is amended by adding at the end the following: , or through the qualified use of services provided by a transportation network company, . (E) Any qualified ride-sharing service provided after the date of the enactment of this subparagraph and before June 1, 2017. . (b) Qualified ride-Sharing services Paragraph (5) of section 132(f) of such Code is amended by adding at the end the following: (G) Qualified ride-sharing service (i) In general The term qualified ride-sharing service means transportation provided through a transportation network company if— (I) such transportation is in connection with travel between the employee’s residence and place of employment, both of which are located within the Washington Metropolitan Area, (II) the employee is an employee of a Government agency and receives transit benefits from the agency, and (III) such transportation is through the use of services that utilize innovative mobility technologies to provide alternatives to driving alone, including car-share, bike-share, carpool or vanpool, multimodal fare payment system, app-based mobility provider, and other innovative projects. (ii) Washington Metropolitan Area The term Washington Metropolitan Area means the District of Columbia; Montgomery, Prince George’s, and Frederick Counties in Maryland; Arlington, Fairfax, Loudon, and Prince William Counties in Virginia; and all cities now or hereafter existing in Maryland or Virginia within the geographic area bounded by the outer boundaries of the combined area of said counties. . (c) Limitation on exclusion Paragraph (2) of section 132(f) of such Code is amended by striking subparagraphs (A) and (B) and inserting subparagraphs (A), (B), and (D) . (d) Effective date The amendments made by this section shall apply to payments made after the date of the enactment of this Act. 3. Transit benefits for services of transportation network companies (a) In general During the period beginning on the date of enactment of this Act and ending on June 1, 2017, or a date determined under subsection (d), whichever is earlier, the head of any agency that has a program, including any program established under section 7905 of title 5, United States Code, or Executive Order 13150 (April 21, 2000; 65 Fed. Reg. 24613), to provide transit benefits to employees of the agency shall provide transit benefits to employees who use the services of transportation network companies within the Washington Metropolitan Area in the same manner as such head provides transit benefits to employees who use public transportation services within the Washington Metropolitan Area. (b) Requirements (1) Election An employee may receive transportation network companies benefits under this section only if the employee agrees in writing not to accept any other transit benefit, including any parking benefit, offered by the applicable agency head while receiving such transportation network companies benefits. (2) Limit The amount of the transit benefit provided to an employee under this section during any month for the use of the services of transportation network companies may not exceed the amount of the transit benefit that would have been provided to the employee during the month for the use of public transportation services. (c) Definitions In this section— (1) the term transportation network company means a corporation, limited liability company, partnership, sole proprietor, or any other entity that utilizes innovative mobility technologies to provide alternatives to driving alone, including car-share, bike-share, carpool or vanpool, multimodal fare payment system, app-based mobility providers, and other innovative projects; and (2) the term Washington Metropolitan Area means the District of Columbia; Montgomery, Prince George’s, and Frederick Counties in Maryland; Arlington, Fairfax, Loudon, and Prince William Counties in Virginia; and all cities now or hereafter existing in Maryland or Virginia within the geographic area bounded by the outer boundaries of the combined area of said counties. (d) Early completion of SafeTrack If the program conducted by the Washington Metropolitan Area Transit Authority (commonly referred to as SafeTrack ) is completed on a date before June 1, 2017, an agency head shall, beginning on such date, discontinue the provision of transit benefits for the use of transportation network companies under this section.