I 111th CONGRESS 1st Session H. R. 3432 IN THE HOUSE OF REPRESENTATIVES July 30, 2009 Mr. Space (for himself and Mr. Paul) 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 long-distance rural commuters a deduction during periods when the local price of gasoline exceeds $3 per gallon.

1.

Short title

This Act may be cited as the Rural Commuters Relief Act of 2009.

2.

Findings

The Congress hereby finds: (1)In 2009, the price of gasoline has risen to record levels in many areas of the United States. (2)Rising gas prices present significant challenges to commuters dependent on cars or other automobiles for transportation to and from their places of employment. (3)Residents of rural areas are particularly affected by increasing gasoline prices given their limited access to public transportation and longer distances between homes and places of employment. (4)The health of economies in many rural areas is particularly susceptible to harm from the increasing price of gasoline. (5)The documented incidence of poverty is higher outside of metropolitan areas than within such areas.

3.

Deduction for long-distance rural commuters during periods of high gasoline prices

(a)

In general

Part VI of subchapter B of chapter 1 of the Internal Revenue Code of 1986 (relating to additional itemized deductions for individuals) is amended by redesignating section 224 as section 225 and by inserting after section 223 the following new section:

224.

High gasoline expenses for long-distance rural commuters

(a)

Allowance of deduction

In the case of an eligible individual, there shall be allowed as a deduction the sum of the amounts determined under subsection (b) for each high gasoline price month during the taxable year. (b)

Amount of deduction

(1)

In general

The amount determined under this subsection for each high gasoline price month shall be an amount equal to— (A)so many of the miles driven by the individual for each trip during such month between the individual’s principal place of abode and primary place of employment as exceeds 30 miles, multiplied by (B)the standard rate of mileage for use of an automobile for purposes of section 162(a) (as in effect for such month). (2)

Increased deduction for car pooling

For any month, in the case of an eligible individual who car pools an average of 4 trips per week during the 3-month period ending with such month, the standard rate of mileage under paragraph (1)(B) shall be increased by $0.30 with respect to each trip during which the individual car pools. (3)

Car pool

For purposes of this subsection, an individual car pools on any trip if at least one other individual is in the highway motor vehicle during substantially all of the trip in connection with the employment of such other individual. (c)

Monthly limitation

The amount determined under subsection (b) with respect to an individual for any month shall not exceed $100. (d)

Eligible individual

For purposes of this section— (1)

In general

The term eligible individual means, with respect to any month, any individual if— (A)throughout such month, the distance between the individual’s principal place of abode and primary place of employment is more than 30 miles, (B)on at least 4 days during each week of such month, such individual commutes between such place of abode and place of employment using a highway motor vehicle— (i)which is fueled by gasoline or diesel fuel, and (ii)which is registered to such individual or to another individual as part of a car pooling arrangement between such individuals, (C)both such places are in rural areas, and (D)the family income of the family which includes the taxpayer does not exceed the median family income for the United States. (2)

Rural area

The term rural area means any nonmetropolitan area (as determined by the Office of Management and Budget for census purposes) with a population of not more than 30,000. (e)

High gasoline price month

For purposes of this section— (1)

In general

The term high gasoline price month means any calendar month during which the average weekly retail price of regular grade gasoline (inclusive of taxes) for applicable PAD District is at least $3 per gallon. (2)

Applicable pad district

For purposes of paragraph (1), the applicable PAD district is the Petroleum Administration for Defense District which includes most of the distance between the individual’s principal place of abode and primary place of employment. (f)

Separate application to individuals filing joint returns

This section shall be applied separately to individuals filing a joint return.

. (b)

Deduction allowed whether or not individual itemizes other deductions

Subsection (a) of section 62 of such Code is amended by inserting after paragraph (21) the following new paragraph: (22)

High gasoline expenses for long-distance rural commuters

The deduction allowed by section 224. . (c)

Clerical amendment

The table of sections for part VI of subchapter B of chapter 1 of such Code is amended by striking the item relating to section 224 and inserting the following new items: Sec. 224. High gasoline expenses for long-distance rural commuters. Sec. 225. Cross reference. . (d)

Effective date

The amendments made by this section shall apply to calendar months beginning after the date of the enactment of this Act and to taxable years ending after such date.