[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 906 Introduced in House (IH)]







107th CONGRESS
  1st Session
                                H. R. 906

 To amend the Internal Revenue Code of 1986 to allow a credit against 
      income tax for the costs of employers in providing certain 
          transportation fringe benefits for their employees.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             March 7, 2001

 Mr. McGovern (for himself, Mr. Shays, Mrs. McCarthy of New York, Mr. 
    Frost, Mr. Nadler, Mr. Clement, Mr. Pascrell, Mrs. Morella, Ms. 
Velazquez, Mr. Issa, Mrs. Kelly, Mr. Filner, Ms. McKinney, Mr. Davis of 
Illinois, Mr. Inslee, Mr. Mica, Mrs. Tauscher, Mr. Meehan, Mr. Conyers, 
  Mr. Weiner, Mr. Serrano, Mr. Crowley, and Mr. King) 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 a credit against 
      income tax for the costs of employers in providing certain 
          transportation fringe benefits for their 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 ``Mass Transit Tax Credit Act of 
2001''.

SEC. 2. CREDIT FOR EMPLOYER COSTS OF PROVIDING CERTAIN TRANSPORTATION 
              FRINGE BENEFITS TO THEIR EMPLOYEES.

    (a) In General.--Subpart D of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 (relating to business-related 
credits) is amended by adding at the end the following new section:

``SEC. 45E. CREDIT FOR EMPLOYER COSTS OF PROVIDING CERTAIN MASS 
              TRANSPORTATION FRINGE BENEFITS TO THEIR EMPLOYEES.

    ``(a) General Rule.--For purposes of section 38, the mass 
transportation fringe credit is an amount equal to 25 percent of the 
cost paid or incurred by an employer during the taxable year for 
providing any qualified transportation fringe described in subparagraph 
(A) or (B) of section 132(f)(1) to employees of such employer.
    ``(b) Limitation.--The amount of the credit under subsection (a) 
for a month may not exceed the dollar amount per month to which the 
amount of the fringe benefits are limited under subparagraph (A) of 
section 132(f)(2).
    ``(c) Election To Have Credit Not Apply.--A taxpayer may elect to 
have this section not apply for any taxable year.''.
    (b) Conforming Amendments.--
            (1) Credit to be part of general business credit.-- 
        Subsection (b) of section 38 of such Code (relating to current 
        year business credit) is amended by striking ``plus'' at the 
        end of paragraph (12), by striking the period at the end of 
        paragraph (13) and inserting ``, plus'', and by adding at the 
        end the following new paragraph:
            ``(14) the mass transportation fringe credit determined 
        under section 45E(a).''.
            (2) No carryback before effective date.--Subsection (d) of 
        section 39 of such Code (relating to carryback and carryforward 
        of unused credits) is amended by adding at the end the 
        following new paragraph:
            ``(10) No carryback of section 45e credit before effective 
        date.--No portion of the unused business credit for any taxable 
        year which is attributable to the credit determined under 
        section 45E may be carried back to a taxable year beginning 
        before January 1, 2002.''.
            (3) Clerical amendment.--The table of sections for subpart 
        D of part IV of subchapter A of chapter 1 of such Code is 
        amended by adding at the end the following new item:

                              ``Sec. 45E. Credit for employer costs of 
                                        providing certain mass 
                                        transportation fringe benefits 
                                        to their employees.''
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2001.
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