[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3271 Introduced in House (IH)]

111th CONGRESS
  1st Session
                                H. R. 3271

  To amend the Internal Revenue Code of 1986 to improve commuting and 
                        transportation options.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             July 21, 2009

Mr. Blumenauer (for himself, Mr. Kirk, and Mr. McGovern) introduced the 
following bill; which was referred to the Committee on Ways and Means, 
 and in addition to the Committee on Oversight and Government Reform, 
for a period to be subsequently determined by the Speaker, in each case 
for consideration of such provisions as fall within the jurisdiction of 
                        the committee concerned

_______________________________________________________________________

                                 A BILL


 
  To amend the Internal Revenue Code of 1986 to improve commuting and 
                        transportation options.

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Green Routes to 
Work Act''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Increased uniform dollar limitation for all types of 
                            transportation fringe benefits.
Sec. 3. Clarification of Federal employee benefits.
Sec. 4. Eligibility of self-employed individuals to receive transit 
                            fringe benefits.
Sec. 5. Parking cash-out programs.
Sec. 6. Vanpool investment credit.
Sec. 7. Refundable employer credit for providing tax-free transit 
                            passes to employees.
Sec. 8. Expenditures to provide bicycle access.
Sec. 9. Employees may receive transit passes and reimbursement of 
                            bicycle commuting expenses as excludable 
                            fringe benefits for the same month.
Sec. 10. Deduction for expenditures to remove architectural and 
                            transportation barriers to bicycle access.
Sec. 11. Credit for teleworking.

SEC. 2. INCREASED UNIFORM DOLLAR LIMITATION FOR ALL TYPES OF 
              TRANSPORTATION FRINGE BENEFITS.

    (a) In General.--Paragraph (2) of section 132(f) of the Internal 
Revenue Code of 1986 (relating to limitation on exclusion) is amended--
            (1) by striking ``$100'' in subparagraph (A) and inserting 
        ``$230'', and
            (2) by striking ``$175'' in subparagraph (B) and inserting 
        ``$230''.
    (b) Inflation Adjustment Conforming Amendments.--Subparagraph (A) 
of section 132(f)(6) of the Internal Revenue Code of 1986 (relating to 
inflation adjustment) is amended--
            (1) by striking the last sentence,
            (2) by striking ``1999'' and inserting ``2010'', and
            (3) by striking ``1998'' and inserting ``2009''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2009.

SEC. 3. CLARIFICATION OF FEDERAL EMPLOYEE BENEFITS.

    Section 7905 of title 5, United States Code, is amended--
            (1) in subsection (a)--
                    (A) in paragraph (2)(C) by inserting ``and'' after 
                the semicolon;
                    (B) in paragraph (3) by striking ``; and'' and 
                inserting a period; and
                    (C) by striking paragraph (4); and
            (2) in subsection (b)(2)(A) by amending subparagraph (A) to 
        read as follows:
                    ``(A) qualified transportation fringe as defined in 
                section 132(f)(1) of the Internal Revenue Code of 
                1986;''.

SEC. 4. ELIGIBILITY OF SELF-EMPLOYED INDIVIDUALS TO RECEIVE TRANSIT 
              FRINGE BENEFITS.

    (a) In General.--Subparagraph (E) of section 132(f)(5) is amended--
            (1) by striking ``For purposes of this subsection, the 
        term'' and inserting the following:
                            ``(i) In general.--Except as provided in 
                        clause (ii), the term'', and
            (2) by adding at the end the following new clause:
    ``(ii) Self-employed Individuals Eligible for Transit Pass Fringe 
Benefit.--For purposes of paragraph (1)(B), such term includes an 
individual who is an employee within the meaning of section 
401(c)(1).''.
    (b) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2009.

SEC. 5. PARKING CASH-OUT PROGRAMS.

    (a) In General.--Subparagraph (C) of section 132(f)(5) is amended--
            (1) by striking ``The term'' and inserting the following:
                            ``(i) In general.--The term''.
            (2) by adding at the end of clause (i), as amended by 
        paragraph (1), the following: ``Such term shall not include any 
        parking with respect to any specified employer unless such 
        employer establishes a parking cash-out program.'', and
            (3) by adding at the end the following new clauses:
                            ``(ii) Specified employer.--For purposes of 
                        this subparagraph, the term `specified 
                        employer' means any employer who--
                                    ``(I) employs on average 50 or more 
                                employees during the calendar year,
                                    ``(II) leases the parking 
                                facilities referred to in clause (i),
                                    ``(III) can separately determine 
                                the amount paid per parking space 
                                leased, and
                                    ``(IV) can reduce the number of 
                                parking space leased (on a basis not 
                                less frequently than monthly) without 
                                penalty.
                            ``(iii) Parking cash-out program.--For 
                        purposes of this subparagraph, the term 
                        `parking cash-out program' means a program 
                        established by the employer under which--
                                    ``(I) the employer offers employees 
                                a cash allowance equal to the regular 
                                amount paid by the employer for parking 
                                for a single employee under clause (i) 
                                in lieu of the parking referred to in 
                                clause (i), and
                                    ``(II) any employee electing the 
                                cash allowance shall certify to the 
                                employer that the employee will comply 
                                with guidelines established by the 
                                employer to avoid neighborhood parking 
                                problems and violation of such 
                                guidelines are enforced by the employer 
                                by termination of eligibility of such 
                                employee for such cash allowance and 
                                employer sponsored parking.''.
    (b) Effective Date.--The amendments made by this section shall 
apply to parking provided during calendar years beginning after 
December 31, 2009.

SEC. 6. VANPOOL INVESTMENT CREDIT.

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

``SEC. 45R. QUALIFYING VANPOOL INVESTMENT CREDIT.

    ``(a) General Rule.--For purposes of section 38, the qualifying 
vanpool investment credit for any taxable year is an amount equal to 10 
percent of the basis of a qualified commuter van placed in service by 
the taxpayer during the taxable year.
    ``(b) Qualified Commuter Van.--For purposes of this section, the 
term `qualified commuter van' means a vehicle--
            ``(1) the seating capacity of which is at least 8, but not 
        more than 15, adults (not including the driver),
            ``(2) which has a 3-year class life,
            ``(3) at least 80 percent of the mileage use of which can 
        reasonably be expected to be for transportation described in 
        section 132(f)(1)(A),
            ``(4) with respect to which depreciation (or amortization 
        in lieu of depreciation) is allowable, and
            ``(5) is originally placed in service by the taxpayer 
        before January 1, 2013.
    ``(c) Contracting for Services Exception.--
            ``(1) In general.--In the case of an employer who contracts 
        with an unrelated person for the provision of transportation 
        described in section 132(f)(1)(A) and who makes an election 
        under this subsection for a taxable year (in such form and 
        manner as the Secretary may by regulation prescribe), in lieu 
        of the amount determined under subsection (a), the qualifying 
        vanpool investment credit with respect to the taxpayer for the 
        taxable year shall be an amount equal to 10 percent of the 
        amounts paid or incurred by the employer for the taxable year 
        pursuant to such contract for the provision of such 
        transportation.
            ``(2) Related persons.--All persons treated as a single 
        employer under subsection (a) or (b) of section 52 shall be 
        treated as related persons for purposes of this subsection.
            ``(3) Termination.--This subsection shall not apply to any 
        amounts paid or incurred after December 31, 2012.
    ``(d) Basis Reduction.--For purposes of this subtitle, the basis of 
any property for which a credit is allowable under subsection (a) shall 
be reduced by the amount of such credit.''.
    (b) Credit Treated as Part of General Business Credit.--Section 
38(b) of such Code 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 of following new 
paragraph:
            ``(36) the qualifying vanpool investment credit determined 
        under section 45R(a).''.
    (c) Conforming Amendment.--Subsection (a) of section 1016 of such 
Code is amended by striking ``and'' at the end of paragraph (36), by 
striking the period at the end of paragraph (37) and inserting ``, 
and'', and by adding at the end the following new paragraph:
            ``(38) to the extent provided in section 45R(e), in the 
        case of amounts with respect to which a credit has been allowed 
        under section 45R.''
    (d) 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. 45R. Qualifying vanpool investment credit.''.
    (e) Effective Date.--The amendments made by this section shall 
apply to property placed in service, and amounts paid or incurred, 
after December 31, 2009.

SEC. 7. 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 36A the following new section:

``SEC. 36B. 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 36B for the taxable year which is 
equal to the amount of the credit allowable for such taxable year under 
section 36B(a).''.
    (c) Clerical Amendment.--The table of sections for such subpart C 
is amended by inserting after the item relating to section 36A the 
following new item:

``36B. 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.

SEC. 8. EXPENDITURES TO PROVIDE BICYCLE ACCESS.

    (a) In General.--Subpart D of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986, as amended by this Act, is 
amended by adding at the end the following new section:

``SEC. 45S. EXPENDITURES TO PROVIDE BICYCLE ACCESS.

    ``(a) In General.--For purposes of section 38, the amount of the 
bicycle access credit determined under this section for any taxable 
year shall be an amount equal to 50 percent of so much of the eligible 
bicycle access expenditures for the taxable year as exceed $250 but do 
not exceed $10,250.
    ``(b) Definitions.--For purposes of this section--
            ``(1) Eligible bicycle access expenditures.--
                    ``(A) In general.--The term `eligible bicycle 
                access expenditures' means amounts paid or incurred for 
                the purpose of improving access, security, or 
                convenience with respect to bicycle travel to or from a 
                business of the taxpayer.
                    ``(B) Expenditures must be reasonable.--Amounts 
                paid or incurred for the purposes described in 
                subparagraph (A) shall include only expenditures which 
                are reasonable and shall not include expenditures which 
                are unnecessary to accomplish such purposes.
                    ``(C) Expenses in connection with new construction 
                not eligible.--The term `eligible bicycle access 
                expenditures' shall not include amounts which are paid 
                or incurred in connection with any facility first 
                placed in service after the date of the enactment of 
                this section.
            ``(2) Eligible small business.--For purposes of this 
        section, the term `eligible small business' shall have the 
        meaning given such term by section 44(b).
    ``(c) Special Rules.--Rules similar to the rules of paragraphs (2), 
(3), (4), (6), and (7) of section 44(d) shall apply for purposes of 
this section.
    ``(d) Regulations.--The Secretary shall prescribe regulations 
necessary to carry out the purposes of this section.''.
    (b) Conforming Amendments.--
            (1) Subsection (b) of section 38 of such Code, as amended 
        by this Act, is amended by striking ``plus'' at the end of 
        paragraph (35), by striking the period at the end of paragraph 
        (36) and inserting ``, plus'', and by adding at the end the 
        following new paragraph:
            ``(37) the bicycle access credit determined under section 
        45S(a).''.
            (2) 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:

``45S. Expenditures to provide bicycle access.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after the date of the enactment of 
this Act.

SEC. 9. EMPLOYEES MAY RECEIVE TRANSIT PASSES AND REIMBURSEMENT OF 
              BICYCLE COMMUTING EXPENSES AS EXCLUDABLE FRINGE BENEFITS 
              FOR THE SAME MONTH.

    (a) In General.--Subclause (II) of section 132(f)(5)(F)(iii) of the 
Internal Revenue Code of 1986 (defining qualified bicycling month) is 
amended by striking ``, (B),''.
    (b) Limitation.--Subparagraph (A) of section 132(f)(2) of such Code 
(relating to limitation on exclusions) is amended by striking ``and 
(B)'' and inserting ``, (B), and (D)''.
    (c) Repeal of Constructive Receipt Treatment of Bicycle Commuting 
Reimbursements.--Paragraph (4) of section 132(f) of such Code is 
amended by striking ``(other than a qualified bicycle commuting 
reimbursement)''.
    (d) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2008.

SEC. 10. DEDUCTION FOR EXPENDITURES TO REMOVE ARCHITECTURAL AND 
              TRANSPORTATION BARRIERS TO BICYCLE ACCESS.

    (a) In General.--Part VI of subchapter B of chapter 1 of the 
Internal Revenue Code of 1986 is amended by inserting after section 190 
the following new section:

``SEC. 190A. EXPENDITURES TO REMOVE ARCHITECTURAL AND TRANSPORTATION 
              BARRIER TO BICYCLE ACCESS.

    ``(a) In General.--A taxpayer may elect (at such time and in such 
manner as the Secretary shall by regulation prescribe) to treat 
architectural and transportation barrier removal expenses of the 
taxpayer for the taxable year as expenses which are not chargeable to 
capital account. The expenditures so treated shall be allowed as a 
deduction.
    ``(b) Architectural and Transportation Barrier Removal Expenses.--
For purposes of this section, the term `architectural and 
transportation barrier removal expenses' means amounts paid or incurred 
for the purpose of making any facility or public transportation vehicle 
owned or leased by the taxpayer for use in connection with his trade or 
business more secure, accessible to, and convenient for use by 
individuals traveling by bicycle.
    ``(c) Limitation.--The deduction allowed by subsection (a) for any 
taxable year shall not exceed $15,000.''.
    (b) Conforming Amendments.--
            (1) Paragraph (1) of section 263(a) of such Code is amended 
        by striking ``or'' at the end of subparagraph (K), by striking 
        the period at the end of subparagraph (L) and inserting ``, 
        or'', and by adding at the end the following new subparagraph:
                    ``(M) expenditures for which a deduction is allowed 
                under section 190A.''.
            (2) Section 1245(a)(2)(C) of such Code is amended by 
        inserting ``190A,'' after ``190,''.
            (3) The table of sections for part VI of subchapter B of 
        chapter 1 of such Code is amended by inserting after the item 
        relating to section 190 the following new item:

``Sec. 190A. Expenditures to remove architectural and transportation 
                            barrier to bicycle access.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after the date of the enactment of 
this Act.

SEC. 11. CREDIT FOR TELEWORKING.

    (a) In General.--Subpart B of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 (relating to foreign tax credit, 
etc.) is amended by adding at the end the following new section:

``SEC. 30E. TELEWORK CREDIT.

    ``(a) Allowance of Credit.--In the case of an eligible taxpayer, 
there shall be allowed as a credit against the tax imposed by this 
chapter for the taxable year an amount equal to the qualified 
teleworking expenses paid or incurred by the taxpayer during such year.
    ``(b) Maximum Credit.--
            ``(1) Per teleworker limitation.--The credit allowed by 
        subsection (a) for a taxable year with respect to qualified 
        teleworking expenses paid or incurred by or on behalf of an 
        individual teleworker shall not exceed $400.
            ``(2) Reduction for teleworking less than full year.--In 
        the case of an individual who is in a teleworking arrangement 
        for less than a full taxable year, the amount referred to 
        paragraph (1) shall be reduced by an amount which bears the 
        same ratio to $400 as the number of months in which such 
        individual is not in a teleworking arrangement bears to 12. For 
        purposes of the preceding sentence, an individual shall be 
        treated as being in a teleworking arrangement for a month if 
        the individual is subject to such arrangement for any day of 
        such month.
    ``(c) Definitions.--For purposes of this section--
            ``(1) Eligible taxpayer.--The term `eligible taxpayer' 
        means--
                    ``(A) in the case of an individual, an individual 
                who performs services for an employer under a 
                teleworking arrangement, or
                    ``(B) in the case of an employer, an employer for 
                whom employees perform services under a teleworking 
                arrangement.
            ``(2) Teleworking arrangement.--The term `teleworking 
        arrangement' means an arrangement under which an employee 
        teleworks for an employer at least 1 day per week.
            ``(3) Qualified teleworking expenses.--The term `qualified 
        teleworking expenses' means expenses paid or incurred under a 
        teleworking arrangement--
                    ``(A) for purchase or installation of any 
                electronic information or telecommunication equipment 
                which is used to enable an individual to telework, or
                    ``(B) for any telecommunications service, or 
                Internet access (or related services), relating to the 
                use of such equipment.
            ``(4) Telework.--The term `telework' means to perform work 
        functions, using electronic information and communication 
        technologies, thereby reducing or eliminating the physical 
        commute to and from the traditional worksite.
    ``(d) Limitation Based on Amount of Tax.--
            ``(1) Liability for tax.--The credit allowable under 
        subsection (a) for any taxable year shall not exceed the excess 
        (if any) of--
                    ``(A) the regular tax for the taxable year, reduced 
                by the sum of the credits allowable under subpart A and 
                the preceding sections of this subpart, over
                    ``(B) the tentative minimum tax for the taxable 
                year.
            ``(2) Carryforward of unused credit.--If the amount of the 
        credit allowable under subsection (a) for any taxable year 
        exceeds the limitation under paragraph (1) for the taxable 
        year, the excess shall be carried to the succeeding taxable 
        year and added to the amount allowable as a credit under 
        subsection (a) for such succeeding taxable year.
    ``(e) Special Rules.--
            ``(1) Basis reduction.--For purposes of this subtitle, the 
        basis of any property for which a credit is allowable under 
        subsection (a) shall be reduced by the amount of such credit 
        (determined without regard to subsection (d)).
            ``(2) Recapture.--The Secretary shall, by regulations, 
        provide for recapturing the benefit of any credit allowable 
        under subsection (a) with respect to any property which ceases 
        to be property eligible for such credit.
            ``(3) Property used outside united states, etc., not 
        qualified.--No credit shall be allowed under subsection (a) 
        with respect to any property referred to in section 50(b) or 
        with respect to the portion of the cost of any property taken 
        into account under section 179.
            ``(4) Election not to take credit.--No credit shall be 
        allowed under subsection (a) for any expense if the taxpayer 
        elects to have this section not apply with respect to such 
        expense.
            ``(5) Denial of double benefit.--No deduction or credit 
        (other than under this section) shall be allowed under this 
        chapter with respect to any expense which is taken into account 
        in determining the credit under this section.
    ``(f) Reporting Requirement.--
            ``(1) In general.--In the case of an eligible taxpayer who 
        is an employer, no credit shall be allowed under this section 
        for qualified teleworking expenses of the employer with respect 
        to such employer's employees unless the taxpayer submits to the 
        Secretary (in such form and manner as the Secretary may 
        prescribe)--
                    ``(A) the survey described in paragraph (2), and
                    ``(B) a detailed description of the teleworking 
                policies of the employer, including a description of--
                            ``(i) which employees of the employer are 
                        eligible to telework,
                            ``(ii) any employer goals relating to 
                        teleworking, and any progress with respect to 
                        such goals, and
                            ``(iii) any materials or resources of the 
                        employer intended to promote or enable 
                        teleworking.
            ``(2) Call for telework data survey.--The Secretary shall, 
        in consultation with the Office of Personnel Management, 
        establish, make publicly available to taxpayers, and update as 
        appropriate, a survey designed to track teleworking trends 
        among employers allowed credits under this section.
            ``(3) Report to congress.--Not later than October 15 of 
        each calendar year, the Secretary shall submit to the Congress, 
        and make publicly available on the Internet and at the offices 
        of the Internal Revenue Service, a report, which shall include 
        a summary of the information contained in the submissions under 
        paragraph (1) for taxable years ending in the previous calendar 
        year.''.
    (b) Conforming Amendment.--Subsection (a) of section 1016 of such 
Code, as amended by this Act, is amended by striking ``and'' at the end 
of paragraph (37), by striking the period at the end of paragraph (38) 
and inserting ``, and'', and by adding at the end the following new 
paragraph:
            ``(39) to the extent provided in section 30E(e), in the 
        case of amounts with respect to which a credit has been allowed 
        under section 30E.''
    (c) Clerical Amendment.--The table of sections for subpart B of 
part IV of subchapter A of chapter 1 of such Code is amended by adding 
at the end the following new item:

``Sec. 30E. Telework credit.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to amounts paid or incurred after December 31, 2009.
                                 <all>