Short title; table of contents

(a)

Short title

This Act may be cited as the

Commuter Relief 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. Eligibility of self-employed individuals to receive transit fringe benefits.

Sec. 4. Parking cash-out programs.

Sec. 5. Vanpool investment credit.

Sec. 6. Employees may receive transit passes and reimbursement of bicycle commuting expenses as excludable fringe benefits for the same month.

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 $200, and (2)by striking $175 in subparagraph (B) and inserting $200. (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 2012, and (3)by striking 1998 and inserting 2011. (c)

Effective date

The amendments made by this section shall apply to taxable years beginning after December 31, 2011.

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, 2011.

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, 2011.

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:

45S.

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 7, 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, 2019. (c)

Leasing exception

(1)

In general

In the case of an employer who enters into a lease 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 lease 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, 2014. (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 (35), by striking the period at the end of paragraph (36) and inserting , plus, and by adding at the end of following new paragraph:

(37)the qualifying vanpool investment credit determined under section 45S(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 45S(e), in the case of amounts with respect to which a credit has been allowed under section 45S.

(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. 45S. 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, 2011.

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, 2011.