H.R. 5129 – Reading Mode

111th CONGRESS

2d Session

H. R. 5129

IN THE HOUSE OF REPRESENTATIVES

April 22, 2010

Mr. Hodes (for himself and Mr. Carnahan) 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 treat carsharing and ridesharing reimbursement arrangements as qualified transportation fringe benefits.

Treatment of ridesharing reimbursement arrangements as qualified transportation fringe benefits

(a)

In general

Paragraph (1) of section 132(f) of the Internal Revenue Code of 1986 is amended by adding at the end the following:

(E)

Any qualified carsharing or ridesharing reimbursement.

(b)

Limitation on exclusion

Subparagraph (A) of section 132(f)(2) of such Code is amended by striking subparagraphs (A) and (B) and inserting subparagraphs (A), (B), and (E).

(c)

Qualified ridesharing reimbursement defined

Paragraph (5) of section 132(f) is amended by adding at the end the following:

(G)

Qualified carsharing or ridesharing reimbursement

(i)

In general

The term qualified carsharing or ridesharing reimbursement means, with respect to transportation provided in a qualified highway vehicle, reimbursement described in clause (iv) under which a passenger, using an electronic transfer of funds or similar mechanism, pays for costs associated with travel to and from a residence for the purposes of getting to and from a place of employment.

(ii)

Limitation

The amount taken into account under clause (i) with respect to any transportation shall not exceed the costs directly associated with travel to and from a residence and a place of employment.

(iii)

Qualified highway vehicle

The term qualified highway vehicle means a highway vehicle which has a seating capacity of more than 1 but not more than 8 adults, excluding taxi-cabs, limousines, and other for-hire vehicles.

(iv)

Reimbursement

Reimbursement is described in this clause if the reimbursement is by cash, voucher, or similar item.

(v)

Determination of costs

For purposes of clause (i), costs shall be determined in accordance with regulations or other guidance prescribed by the Secretary in consultation with the Secretary of Transportation.

(vi)

Substantiation

Clause (i) shall not apply to any transportation unless the taxpayer substantiates the length of such transportation through the use of global positioning satellite technology or other means of substantiation as authorized by the Secretary.

(d)

Coordination with bicycle commuting

Subclause (II) of section 132(f)(5)(F)(iii) of such Code is amended by striking or (C) and inserting (C), or (D).

(e)

Inflation adjustment freeze

Paragraph (6) of section 132(f) of such code is amended by adding at the end the following:

(C)

Inflation adjustment freeze

The inflation adjustment mentioned in this paragraph shall not be made for taxable years 2011 through 2021.

(f)

Effective date

The amendments made by this section shall apply to taxable years beginning after December 31, 2010.