HR409119th CongressWALLET

Supporting Transit Commutes Act

Sponsored By: Representative Auchincloss

Introduced

Summary

Limits tax deductions for certain employer-provided transportation fringe benefits and halves the deduction when workers can take the benefit as cash. This bill would change the tax code to tie the deductible amount for covered transportation fringe benefits to the cap in section 132(f)(2)(A) and to apply a 50 percent rule when employees may elect cash instead of the fringe.

Show full summary
  • Workers and commuters: The deduction tied to a qualified transportation fringe would be constrained by the limit in section 132(f)(2)(A). If an employee can choose cash instead of the benefit the deductible amount would be treated as 50 percent of that capped amount.
  • Employers: Businesses that offer the transportation fringe benefits described in section 132(f)(1)(A) and (B) would face a smaller tax deduction for those benefits, particularly when they offer a cash election.
  • Technical and timing changes: The bill redesignates and updates cross-references in section 274(l), inserts “for qualified bicycle commuting reimbursement” into a heading, and applies to amounts paid or incurred in taxable years ending after enactment.

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Bill Overview

Analyzed Economic Effects

1 provisions identified: 1 benefits, 0 costs, 0 mixed.

Tax break for employer transit benefits

If enacted, employers could deduct part of what they pay for workers' transit passes or commuter parking. The deduction would apply up to the legal cap for these benefits each year. If employees can choose cash instead of the benefit (salary-reduction), only 50% of that capped amount would be deductible. This would apply to amounts paid or incurred after the date of enactment, in taxable years ending after that date.

Sponsors & CoSponsors

Sponsor

Auchincloss

MA • D

Cosponsors

  • Rep. Lawler, Michael [R-NY-17]

    NY • R

    Sponsored 1/15/2025

  • McGovern

    MA • D

    Sponsored 1/15/2025

  • Carson

    IN • D

    Sponsored 1/28/2025

  • Del. Norton, Eleanor Holmes [D-DC-At Large]

    DC • D

    Sponsored 1/31/2025

  • Rep. Watson Coleman, Bonnie [D-NJ-12]

    NJ • D

    Sponsored 1/31/2025

  • Rep. Latimer, George [D-NY-16]

    NY • D

    Sponsored 2/27/2025

  • Rep. Suozzi, Thomas R. [D-NY-3]

    NY • D

    Sponsored 10/3/2025

  • Kennedy (NY)

    NY • D

    Sponsored 12/1/2025

Roll Call Votes

No roll call votes available for this bill.

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