H.R. 409

119th CONGRESS 1st Session

To amend the Internal Revenue Code of 1986 to allow employers to deduct certain transportation fringe benefits.

IN THE HOUSE OF REPRESENTATIVES · January 15, 2025 · Sponsor: Mr. Auchincloss · Committee: Committee on Ways and Means

Table of contents

• H.R. 409
  • SEC. 1. Short title
  • SEC. 2. Deduction allowed for certain transportation fringe benefits provided by employers

SEC. 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
  • 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: Section 274(l)
    • (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 for . 50 percent of so much``
• (b) Conforming amendment
  • Section 274(l)(3) of such Code, as redesignated by subsection (a), is amended—
    • by striking this subsectionand inserting paragraph (1), and
    • by inserting after 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.