[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6173 Introduced in House (IH)]

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114th CONGRESS
  2d Session
                                H. R. 6173

To amend the Internal Revenue Code of 1986 to allow a refundable credit 
             against tax for commuting mass transit costs.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           September 26, 2016

Mrs. Watson Coleman (for herself, Mr. Beyer, Mr. Bishop of Georgia, Mr. 
Brendan F. Boyle of Pennsylvania, Mr. Cardenas, Ms. Clarke of New York, 
  Mr. Conyers, Ms. Fudge, Mr. Grijalva, Mr. Gutierrez, Mr. Honda, Mr. 
   Israel, Ms. Jackson Lee, Mr. Jeffries, Mr. Meeks, Ms. Moore, Mr. 
  Nadler, Mrs. Napolitano, Ms. Norton, Ms. Plaskett, Mr. Serrano, Mr. 
  Tonko, and Mr. DeSaulnier) 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 refundable credit 
             against tax for commuting mass transit costs.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Transit Tax Credit Act of 2016''.

SEC. 2. CREDIT AGAINST TAX FOR COMMUTING MASS TRANSIT COSTS.

    (a) In General.--Subpart C of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 is amended by inserting after 
section 36B the following new section:

``SEC. 36C. COMMUTING MASS TRANSIT COSTS.

    ``(a) In General.--In the case of an individual, there shall be 
allowed as a credit against the tax imposed by this subtitle for such 
taxable year an amount equal to 15 percent of the amount paid or 
incurred by the taxpayer during such taxable year for a transit pass 
(as defined in section 132(f)(5)(A)) for use by the taxpayer or the 
taxpayer's spouse or dependents for travel between the residence and 
place of employment of such taxpayer, spouse, or dependent, as the case 
may be.
    ``(b) Requirement of Employment Without Qualified Transportation 
Fringe.--No credit shall be allowable under this section with respect 
to transit passes for use by any individual unless--
            ``(1) such individual is an employee at any time during the 
        taxable year, and
            ``(2) no amount is excludable from gross income as a 
        qualified transportation fringe under section 132 with respect 
        to such individual for the taxable year.
    ``(c) Dollar Limitation.--
            ``(1) In general.--The credit allowed under subsection (a) 
        with respect to transit passes for use by any individual for 
        any taxable year shall not exceed $460.
            ``(2) Adjustment for inflation.--In the case of any taxable 
        year beginning after December 31, 2017, the dollar amount in 
        paragraph (1) shall be increased by an amount equal to--
                    ``(A) such dollar amount, multiplied by
                    ``(B) the cost-of-living adjustment determined 
                under section 1(f)(3) for the calendar year in which 
                the taxable year begins, determined by substituting 
                `calendar year 2016' for `calendar year 1992' in 
                subparagraph (B) thereof.''.
    (b) Clerical Amendment.--The table of sections for subpart C of 
part IV of subchapter A of chapter 1 of the Internal Revenue Code of 
1986 is amended by inserting after the item relating to section 36B the 
following new item:

``Sec. 36C. Commuting mass transit costs.''.
    (c) Effective Date.--The amendments made by this section shall 
apply with respect to taxable years beginning after December 31, 2016.
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