COVID–19 Commuter Benefits Distribution Act
Sponsored By: Representative Gillen, Laura [D-NY-4]
Introduced
Summary
One-time taxable distributions from employer commuter benefit accounts would be allowed under a specific procedure. Payments must be made in a six-month window after enactment and are capped at the account's highest balance from March 13, 2020 through December 31, 2023.
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- Employees: Workers could receive a one-time payment from their transportation fringe benefit account up to that cap. That one-time payment would be included in the employee's gross income in the year it is paid.
- Employers and payroll administrators: Employers would provide the payment from accounts set up by salary-reduction agreements that allowed unused monthly amounts to carry forward. Employers must treat the distribution as taxable to the employee.
- Tax treatment of other benefits: Whether later or other payments from the same account qualify as tax-free commuter benefits under the tax code would be determined without counting this one-time payment.
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Bill Overview
Analyzed Economic Effects
1 provisions identified: 0 benefits, 1 costs, 0 mixed.
Workers: Tax on one-time commuter payout
If enacted, this bill would allow a one-time payment from certain employer-run commuter accounts to employees during the six months after enactment. That one-time payment would be included in the employee's gross income for the tax year it is paid. The payable amount would be limited so it does not exceed the account's highest balance between March 13, 2020 and December 31, 2023. The account must be a payroll-reduction commuter account that allowed unused monthly amounts to carry forward, and other commuter benefits would still be judged under section 132 without counting this one-time payment.
Sponsors & CoSponsors
Sponsor
Gillen, Laura [D-NY-4]
NY • D
Cosponsors
Rep. Garbarino, Andrew R. [R-NY-2]
NY • R
Sponsored 6/24/2026
Rep. Suozzi, Thomas R. [D-NY-3]
NY • D
Sponsored 6/24/2026
Rep. LaLota, Nick [R-NY-1]
NY • R
Sponsored 6/24/2026
Roll Call Votes
No roll call votes available for this bill.
View on Congress.gov