HR 409
Supporting Transit Commutes Act
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Sign in to take action- Introduced
- Passed House
- Passed Senate
- To President
- Became Law
Bill overview
This bill, the Supporting Transit Commutes Act, allows employers to deduct expenses related to transportation benefits offered to their employees. Specifically, employers can deduct costs for providing commuter highway vehicles like van pools or transit passes, up to a monthly limit of $325 per employee in 2025. The deduction is capped at 50% for benefits provided through salary reduction agreements. The bill modifies existing tax code to clarify and expand these deductions.
Key provisions
- Employers can deduct costs for commuter highway vehicles.
- Employers can deduct costs for transit passes.
- The monthly deduction limit for employee transportation benefits is $325 in 2025.
- The deduction is capped at 50% for benefits provided through salary reduction agreements.
- The bill amends existing tax code sections related to fringe benefits.
Who is affected
- Employers
- Employees
- Transportation Industry
Notable changes
- Expands employer deductions for transportation fringe benefits.
- Establishes a monthly deduction limit for employee benefits.
- Creates a 50% cap on deductions for salary reduction agreements.
Fiscal impact
The bill could potentially reduce employers’ tax liabilities by allowing them to deduct transportation expenses.
Sponsors
Official sponsors from legislative records.
Primary sponsor
Cosponsors
Eleanor Holmes [D-DC-At Large] Norton
Arguments in favor
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119th CONGRESS — 1st Session
H. R. 409
IN THE HOUSE OF REPRESENTATIVES
A BILL
To amend the Internal Revenue Code of 1986 to allow employers to deduct certain transportation fringe benefits.
This Act may be cited as the Supporting Transit Commutes Act
.
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.