H.R. 1680 (112th): Transportation Flexible Savings Accounts Act of 2011

HR 1680 IH

To amend the Internal Revenue Code of 1986 to provide commuter flexible spending arrangements.

May 2, 2011

Mr. WEINER introduced the following bill; which was referred to the Committee on Ways and Means

To amend the Internal Revenue Code of 1986 to provide commuter flexible spending arrangements.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the ‘Transportation Flexible Savings Accounts Act of 2011’.

SEC. 2. TRANSPORTATION FLEXIBLE SPENDING ARRANGEMENTS.

(a) In General- Section 125 of the Internal Revenue Code of 1986 (relating to cafeteria plans) is amended by redesignating subsections (k) and (l) as subsections (l) and (m), respectively, and by inserting after subsection (j) the following new subsection:

‘(k) Transportation Flexible Spending Arrangement-

‘(1) IN GENERAL- Notwithstanding subsection (f), qualified transportation fringe shall be treated as a qualified benefit for purposes of this section to the extent provided under a flexible spending arrangement (as defined in section 106(c)).

‘(2) QUALIFIED TRANSPORTATION FRINGE- For purposes of this subsection, the term ‘qualified transportation fringe’ has the meaning given such term by section 132(f), except that paragraph (2)(B) thereof shall be applied by substituting ‘$100’ for ‘$175’.’.

(b) Modification of Regulations- The Secretary of the Treasury shall make such modifications to Treasury Regulations under section 125 of the Internal Revenue Code of 1986 as may be necessary to allow qualified transportation fringe (as defined in section 125(k) of such Code) to be offered through a flexible spending arrangement in a cafeteria plan.

(c) Effective Date- The amendment made by this section shall apply to taxable years beginning after the date of the enactment of this Act.

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