Text: H.R.55 — 111th Congress (2009-2010)All Bill Information (Except Text)

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Introduced in House (01/06/2009)


111th CONGRESS
1st Session
H. R. 55

To amend the Internal Revenue Code of 1986 to allow employers a refundable credit against income tax for 50 percent of the employer’s cost of providing tax-free transit passes to employees.


IN THE HOUSE OF REPRESENTATIVES
January 6, 2009

Mr. Kirk (for himself, Mr. Lipinski, Mrs. Biggert, and Mr. Roskam) introduced the following bill; which was referred to the Committee on Ways and Means


A BILL

To amend the Internal Revenue Code of 1986 to allow employers a refundable credit against income tax for 50 percent of the employer’s cost of providing tax-free transit passes to employees.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. Short title.

This Act may be cited as the “Creating Opportunities to Motivate Mass-transit Utilization To Encourage Ridership Act of 2009” or the “Commuter Act of 2009”.

SEC. 2. Refundable employer credit for providing tax-free transit passes to employees.

(a) In general.—Subpart C of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 (relating to refundable credits) is amended by inserting after section 35 the following new section:

“SEC. 35A. Employers providing tax-free transit passes to employees.

“(a) In general.—In the case of an employer, there shall be allowed as a credit against the tax imposed by this subtitle for the taxable year an amount equal to 50 percent of the amount paid or incurred by the taxpayer during the taxable year—

“(1) for transit passes provided to employees of such employer, and

“(2) as cash reimbursements made to such employees for transit passes purchased by such employees.

“(b) Limitation to tax-free transit passes.—Subsection (a) shall apply to a transit pass (or reimbursement) provided to an employee only to the extent that the employer reasonably expects that the value of such pass (or the amount of such reimbursement) is excludable from such employee’s income under section 132.

“(c) Exclusion of nontaxpayers.—Subsection (a) shall not apply to any employer which is exempt from the tax imposed by this chapter with respect to the activity in which the employee is performing services for the employer.

“(d) Definitions.—Terms used in this section shall have the respective meanings given such terms by section 132.”.

(b) Denial of double benefit.—Section 280C of such Code is amended by adding at the end the following new subsection:

“(g) Employer credit for providing tax-free transit passes to employees.—No deduction shall be allowed for that portion of the expenses (otherwise allowable as a deduction) taken into account in determining the credit under section 35A for the taxable year which is equal to the amount of the credit allowable for such taxable year under section 35A(a).”.

(c) Clerical amendment.—The table of sections for such subpart C is amended by inserting after the item relating to section 35 the following new item:


“Sec. 35A. Employers providing tax-free transit passes to employees.”.

(d) Effective date.—The amendments made by this section shall apply to transit passes provided after the date of the enactment of this Act in taxable years ending after such date.