Introduced in House — H.R. 409

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.

Section 1. Short title

This Act may be cited as the Supporting Transit Commutes Act.

Sec. 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.