S.Amdt. 789

1. Adds SEC. __. EXCLUSION FOR CERTAIN FUEL COSTS OF RURAL COMMUTERS wherever appropriate

   Adds a section

   Inserted: SEC. __. EXCLUSION FOR CERTAIN FUEL COSTS OF RURAL COMMUTERS.

   Inserted: (a) In General.--Section 132(f)(1) (defining qualified transportation fringe) is amended by adding at the end the following new subparagraph:

   Inserted: "(D) In the case of an eligible rural commuter, the cost of fuel for a highway vehicle of the taxpayer the primary purpose of which is to travel between the taxpayer's residence and place of employment.".

   Inserted: (b) Limitation on Exclusion.--Section 132(f)(2) (relating to limitation on exclusion) is amended by striking "and" at the end of subparagraph (A), by striking the period at the end of subparagraph (B) and inserting ", and", and by adding at the end the following new subparagraph:

   Inserted: "(C) $50 per month in the case of the benefit described in subparagraph (D).".

   Inserted: (c) Eligible Rural Commuter.--Section 132(f)(5) (relating to definitions) is amended by adding at the end the following new subparagraph:

   Inserted: "(F) Eligible rural commuter.--The term 'eligible rural commuter' means any employee--

   Inserted: "(i) who resides in a rural area (as defined by the Bureau of the Census),

   Inserted: "(ii) who works in an area which is not accessible by a transit system designed primarily to provide daily work trips within a local commuting area, and

   Inserted: "(iii) who is not be eligible to claim any qualified transportation fringe described in subparagraph (A) or (B) of paragraph (1).".

   Inserted: (d) Effective Date.--The amendments made by this section shall apply to expenses incurred on and after the date of the enactment of this Act and before January 1, 2006.

   The amendment doesn't say where this goes; the clerk decides.

   Original wording

   At the appropriate place, insert the following:

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As printed