I 111th CONGRESS 2d Session H. R. 4964 IN THE HOUSE OF REPRESENTATIVES March 25, 2010 Mr. Mario Diaz-Balart of Florida 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 provide individuals a deduction for commuting expenses.

1.

Short title

This Act may be cited as the Commuter Aid and Relief for Suburbs Act of 2010 or as the CARS Act of 2010.

2.

Deduction for certain commuting expenses of individuals

(a)

In general

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

224.

Certain commuting expenses

(a)

In general

In the case of an individual, there shall be allowed as a deduction an amount equal to the applicable percentage of the amount paid or incurred by the taxpayer during the taxable year for qualified commuting expenses of the taxpayer, his spouse, and dependents. (b)

Applicable percentage

For purposes of this section— (1)

In general

The term applicable percentage means, with respect to the expenses of any individual in connection with a round-trip commute of a certain number of miles, the percentage determined in accordance with the following table: In the case of aThe applicable  round-trip commute of:percentage is: Less than 10 miles10 percent At least 10 miles, but not greater than 15 miles30 percent At least 15 miles, but not greater than 25 miles50 percent At least 25 miles75 percent. (2)

Special rule for high gas mileage vehicles and carpoolers

Notwithstanding paragraph (1), the applicable percentage shall be 100 percent with respect to any portion of a round-trip commute which is made— (A)in a motor vehicle which has a gasoline equivalent fuel efficiency of more than 40 miles per gallon, (B)in a motor vehicle while carrying carpooling passengers, or (C)on public transporation (including any parking fees in connection with using such public transportation). (c)

Definitions related to commuting

For purposes of this section— (1)

Qualified commuting expenses

The term qualified commuting expenses means reasonable expenses paid or incurred for transportation (including public transportation and parking fees in connection with using any such public transportation) in connection with travel between an individual’s residence and place of employment. (2)

Round-trip commute

The term round-trip commute means the reasonable driving distance from an individual’s residence to such individual’s place of employment and back to such residence.

. (b)

Clerical amendment

The table of sections for part VII of subchapter B of chapter 1 of such Code is amended by redesignating the item relating to section 224 as an item relating to section 225 and inserting before such item the following new item: Sec. 224. Certain commuting expenses. . (c)

Effective date

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