COVID–19 Commuter Benefits Distribution Act
- Bill Number
- H.R. 9428
- Origin Chamber
- House
- Congress
- 119th Congress, Session 2
- Policy Area
- Taxation
- Status
- Introduced
- Latest Action
- 2026-06-24: Referred to the House Committee on Ways and Means.
- Last Updated
- 2026-07-09T21:08:59Z
AI-Generated Summary
Purpose
This legislation permits one-time distributions from certain transportation fringe benefit accounts, allowing employees to access unused funds accumulated during the COVID-19 period, with those distributions treated as taxable income.
Key Provisions
- Qualified Payment: Defines a one-time distribution made within six months of the Act's enactment from a specified account to the employee, limited to the highest account balance between March 13, 2020, and December 31, 2023.
- Tax Treatment: The payment is included in the employee's gross income for the year received; other payments from the account remain eligible for exclusion as qualified transportation fringes under existing rules.
- Account Definition: Covers amounts set aside under employer compensation reduction agreements for transportation benefits (such as transit or parking), where unused balances can carry forward to future months.
Significant Changes to Existing Law
- Creates a temporary exception to the exclusion rules in Section 132 of the Internal Revenue Code of 1986, allowing taxable withdrawals from these accounts without disqualifying remaining benefits.
- Introduces time-bound flexibility for accessing unused funds tied to pandemic-related reductions in commuting, which were previously restricted to ongoing qualified uses.
Potential Impacts
- On Citizens: Employees with accumulated balances gain access to cash distributions but face inclusion of those amounts in taxable income.
- On Government Agencies: The Internal Revenue Service would administer the income inclusion and reporting requirements for these one-time payments.
- No direct effects on international relations are outlined.
Main Stakeholders Affected
- Employees whose employers maintain these transportation fringe benefit accounts.
- Employers offering compensation reduction agreements for such benefits.
- The Internal Revenue Service, responsible for tax oversight and enforcement.
Notable Legal, Constitutional, or Political Implications
- Tax Implications: Shifts previously excludable fringe benefits into taxable income for the specified distributions, creating a limited carve-out from standard fringe benefit treatment.
- No constitutional or broader political implications are addressed in the legislation itself.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Cosponsors (3)
Rep. Garbarino, Andrew R. [R-NY-2], Rep. Suozzi, Thomas R. [D-NY-3], Rep. LaLota, Nick [R-NY-1]
Recent Actions
- 2026-06-24: Referred to the House Committee on Ways and Means.
- 2026-06-24: Introduced in House
- 2026-06-24: Introduced in House
Bill Versions
- COVID–19 Commuter Benefits Distribution Act — issued 2026-06-24 — PDF (3 pages)