H.R. 2288: Commuter Parity Act of 2013

113th Congress, 2013–2015. Text as of Jun 06, 2013 (Introduced).

Status & Summary | PDF | Source: GPO and Cato Institute Deepbills

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113th CONGRESS

1st Session

H. R. 2288

IN THE HOUSE OF REPRESENTATIVES

June 6, 2013

(for himself, Mr. Blumenauer, Mr. King of New York, 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 modify the exclusion for transportation benefits.

1.

Short title

This Act may be cited as the Commuter Parity Act of 2013 .

2.

Qualified transportation fringe

(a)

In general

Subsection (f) of section 132 of the Internal Revenue Code of 1986 is amended to read as follows:

(f)

Qualified transportation fringe

(1)

In general

For purposes of this section, the term qualified transportation fringe means any of the following provided by an employer to an employee:

(A)

Transportation in a commuter highway vehicle if such transportation is in connection with travel between the employee’s residence and place of employment.

(B)

Any transit pass.

(C)

Qualified parking.

(D)

Any qualified bicycle commuting reimbursement.

(2)

Limitation on exclusion

The amount of the fringe benefits which are provided by an employer to any employee and which may be excluded from gross income under subsection (a)(5) shall not exceed—

(A)

$220 per month in the case of the aggregate of the benefits described in subparagraphs (A) and (B) of paragraph (1),

(B)

$220 per month in the case of qualified parking, and

(C)

$35 per month for qualified bicycle commuting reimbursement.

(3)

No constructive receipt

No amount shall be included in the gross income of an employee solely because the employee may choose between any qualified transportation fringe and compensation which would otherwise be includible in gross income of such employee.

(4)

Definitions

For purposes of this subsection—

(A)

Transit pass

The term transit pass means any pass, token, farecard, voucher, or similar item entitling a person to transportation (or transportation at a reduced price) if such transportation is—

(i)

on mass transit facilities (whether or not publicly owned), or

(ii)

provided by any person in the business of transporting persons for compensation or hire if such transportation is provided in a vehicle meeting the requirements of subparagraph (B)(i).

(B)

Commuter highway vehicle

The term commuter highway vehicle means any highway vehicle—

(i)

the seating capacity of which is at least 6 adults (not including the driver), and

(ii)

at least 80 percent of the mileage use of which can reasonably be expected to be—

(I)

for purposes of transporting employees in connection with travel between their residences and their place of employment, and

(II)

on trips during which the number of employees transported for such purposes is at least ½ of the adult seating capacity of such vehicle (not including the driver).

(C)

Qualified parking

The term qualified parking means parking provided to an employee on or near the business premises of the employer or on or near a location from which the employee commutes to work by transportation described in subparagraph (A), in a commuter highway vehicle, or by carpool. Such term shall not include any parking on or near property used by the employee for residential purposes.

(D)

Transportation provided by employer

Transportation referred to in paragraph (1)(A) shall be considered to be provided by an employer if such transportation is furnished in a commuter highway vehicle operated by or for the employer.

(E)

Employee

For purposes of this subsection, the term employee includes an individual who is an employee within the meaning of section 401(c)(1).

(F)

Qualified bicycle commuting reimbursement

For the purposes of this subsection, the term qualified bicycle commuting reimbursement means any employer reimbursement for reasonable expenses incurred by the employee for the purchase of a bicycle and bicycle improvements, repair, and storage, or bikesharing program, if such bicycle is regularly used for travel between the employee’s residence and place of employment.

(5)

Inflation adjustment

(A)

In general

In the case of any taxable year beginning in a calendar year after 2014, the dollar amounts contained in paragraph (2) shall be increased by an amount equal to—

(i)

such dollar amount, multiplied by

(ii)

the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, by substituting calendar year 2013 for calendar year 1992.

(B)

Rounding

If any increase determined under subparagraph (A) is not a multiple of $5, such increase shall be rounded to the next lowest multiple of $5.

(6)

Coordination with other provisions

For purposes of this section, the terms working condition fringe and de minimis fringe shall not include any qualified transportation fringe (determined without regard to paragraph (2)).

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(b)

Conforming amendments

Sections 403(b)(3)(B), 414(s)(2), 415(c)(3)(D)(ii) of such Code are each amended by striking 132(f)(4),.

(c)

Effective date

The amendments made by this section shall apply to taxable years beginning after December 31, 2013.