HR409-119

1. Short title This Act may be cited as the Supporting Transit Commutes Act.

2. Deduction allowed for certain transportation fringe benefits provided by employers Section 274(l) 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: 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). 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 50 percent of so much for so much. Section 274(l)(3) of such Code, as redesignated by subsection (a), is amended— by striking this subsection and inserting paragraph (1), and by inserting for qualified bicycle commuting reimbursement after Exception in the heading thereof. 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. (2)Exception for certain transportation fringe benefits(A)In generalParagraph (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 agreementsIn 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 50 percent of so much for so much. .