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Internal Revenue Code of 1986

The main body of federal tax laws in the United States, which this bill proposes to change.

Deduct

To subtract an expense from taxable income, which reduces the amount of tax owed.

Transportation fringe benefits

Non-cash benefits an employer provides to an employee related to their commute, such as transit passes or parking.

Qualified transportation fringe

Specific types of transportation benefits, like transit passes or vanpool expenses, that meet certain IRS rules for tax-favored treatment.

Salary reduction agreements

An arrangement where an employee agrees to have a portion of their salary deducted to pay for certain benefits, often on a pre-tax basis.

Transit pass

A pass, token, fare card, or other item that allows a person to ride public transportation (like buses, subways, or trains).

Commuter highway vehicle

A van or similar vehicle that seats at least 6 adults (not including the driver) and is used for at least 80% of its mileage for employee commuting, with at least half the seats filled.