Bill > HR409

This bill amends the Internal Revenue Code to modify how employers can deduct transportation fringe benefits for employees. Specifically, the bill allows employers to deduct the full cost of qualified transportation benefits, such as transit passes or vanpool transportation (as defined in section 132(f)(1)(A) and (B)), up to the current statutory limitation. For transportation benefits provided through salary reduction agreements (where employees can choose between receiving the benefit or cash), employers can only deduct 50% of the cost. The bill provides a technical update to existing tax law, making it easier for employers to offer and receive tax benefits for supporting employees' commuting expenses. The changes will apply to amounts paid or incurred after the date of the bill's enactment, in taxable years ending after that date. The goal appears to be encouraging employers to support sustainable and cost-effective commuting options for workers by providing more favorable tax treatment for transportation fringe benefits.

Budget and Finance

https://www.congress.gov/bill/119th-congress/house-bill/409/all-info