I 111th CONGRESS 1st Session H. R. 2367 IN THE HOUSE OF REPRESENTATIVES May 12, 2009 Mr. Hodes 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 to employers for reimbursing the expenses of employees who provide carpooling.

1.

Carpooling reimbursement credit

(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:

45R.

Carpooling reimbursement credit

(a)

General rule

For purposes of section 38, the carpooling reimbursement credit determined under this section for the taxable year is an amount equal to 50 percent of the amount paid or incurred by the taxpayer during the taxable year to reimburse employees of the taxpayer for qualified carpooling expenses. (b)

Limitation

The amount of reimbursement which may be taken into account under subsection (a) shall not exceed $250 with respect to any employee of the taxpayer for any taxable year. (c)

Qualified carpooling expenses

For purposes of this section— (1)

In general

The term qualifying carpooling expenses means the reasonable commuting expenses paid or incurred by an employee of the taxpayer while providing a carpooling service. (2)

Reasonable commuting expenses

The term reasonable commuting expenses means reasonable expenses paid or incurred in connection with driving a passenger automobile between an individual’s residence and place of employment. (3)

Carpooling service

The term carpooling service means carrying as passengers (in addition to the driver) at least 2 individuals who are also traveling between such passenger’s residence and place of employment. (d)

No double benefit

No deduction or credit shall be allowed under any other provision of this chapter with respect to the amount of the credit determined under this section. (e)

Payments to State and local governments

The Secretary shall pay to State and local governments the amount of the carpooling reimbursement credit that would be determined under subsection (a) if such State or local government were a taxpayer. For purposes of section 1324 of title 31, United States Code, such payments shall be treated as a refunding of internal revenue collections to which subsection (b) of such section does not apply.

. (b)

Credit To be part of general business credit

Subsection (b) of section 38 of such Code (relating to general business credit) is amended by striking plus at the end of paragraph (34), by striking the period at the end of paragraph (35) and inserting , plus, and by adding at the end the following new paragraph: (36)the carpooling reimbursement credit determined under section 45R(a). . (c)

Clerical amendment

The table of sections for subpart D of part IV of subchapter A of chapter 1 of such Code is amended by inserting after the item relating to section 45Q the following new item: Sec. 45R. Carpooling reimbursement credit. . (d)

Effective date

The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.