Transit Benefits Modernization Act

Transit Benefits Modernization Act

This bill amends the Internal Revenue Code to treat the use of a transportation network company by federal employees during the period beginning on the date of enactment of this bill and ending on December 31, 2018, as a qualified transportation fringe benefit that is excluded from an employee's gross income.

A "transportation network company" is a corporation, partnership, sole proprietorship, or other entity that uses a digital network to connect riders to drivers affiliated with the entity in order for a driver to provide transportation services to a rider.

During the period beginning on the date of enactment of this bill and ending on December 31, 2018, any agency that provides transit benefits to employees must provide benefits for using digital transportation companies within the Washington Metropolitan Area in the same manner as benefits are provided for using public transportation services in the area.

A "digital transportation company" is any transportation network company or car-sharing service (a membership or non-membership based service primarily designed for shorter time or shorter distance trips where individuals are charged per mile or per hour, or both, for vehicle usage).

To elect to receive benefits under this section, an employee must agree in writing not to accept any other transit or parking benefit offered by any agency with a transit benefit program while receiving the benefits under this section.

The amount of transit benefits provided to an employee under this section may not exceed the monthly average transit benefit received by the employee during the six-month period immediately preceding the month during which an election is made.