Supporting Transit Commutes Act

Bill: 119-hr-409
Sponsor: full_name: Rep. Auchincloss, Jake [D-MA-4]
Introduced: 2025-01-15
Policy area: Taxation
Subjects: Commuting

Employee benefits and pensions

Income tax deductions

Transportation costs
Latest action: action_date: 2025-01-15
text: Referred to the House Committee on Ways and Means.

Summaries:
action_date: 2025-01-15
action_desc: Introduced in House
text: <p><strong>Supporting Transit Commutes Act&nbsp;</strong></p><p>This bill provides employers a tax deduction for certain transportation fringe benefits given to employees.</p><p>Under the bill, employers may deduct costs for providing employees transportation in a commuter highway vehicle (e.g., van pool) between the employee’s home and place of work or a transit pass. The amount of the deduction cannot exceed the aggregate exclusion amount for such fringe benefits ($325 per month per employee in 2025 and adjusted annually). Further, under the bill, the deduction cannot exceed 50% of such amount for transportation fringe benefits provided under a salary reduction agreement.</p>

tv_txt: I 119th CONGRESS 1st Session H. R. 409 IN THE HOUSE OF REPRESENTATIVES January 15, 2025 Mr. Auchincloss (for himself, Mr. Lawler , and Mr. McGovern ) 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 employers to deduct certain transportation fringe benefits.

1. Short title This Act may be cited as the Supporting Transit Commutes Act . 2. Deduction allowed for certain transportation fringe benefits provided by employers (a) In general Section 274(l) of the Internal Revenue Code of 1986 is amended by redesignating paragraph (2) as paragraph (3) and inserting after paragraph (1) the following new paragraph: (2) Exception for certain transportation fringe benefits (A) In general Paragraph (1) shall not apply to so much of any qualified transportation fringe described in subparagraph (A) or (B) of section 132(f)(1) as does not exceed the limitation described in section 132(f)(2)(A). (B) Reduced deduction in case of benefits provided under salary reduction agreements In the case of any qualified transportation fringe with respect to which the employee may elect between receiving such fringe and receiving an amount directly in cash, subparagraph (A) shall be applied by substituting 50 percent of so much for so much . . (b) Conforming amendment Section 274(l)(3) of such Code, as redesignated by subsection (a), is amended— (1) by striking this subsection and inserting paragraph (1) , and (2) by inserting for qualified bicycle commuting reimbursement after Exception in the heading thereof. (c) Effective date The amendments made by this section shall apply to amounts paid or incurred after the date of the enactment of this Act, in taxable years ending after such date.