COVID–19 Commuter Benefits Distribution Act

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 4928 Introduced in Senate (IS)]

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119th CONGRESS
  2d Session
                                S. 4928

To allow for one-time distributions from certain transportation fringe
                           benefit accounts.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                             June 24, 2026

Mrs. Gillibrand (for herself and Mr. Schumer) introduced the following
  bill; which was read twice and referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL

To allow for one-time distributions from certain transportation fringe
                           benefit accounts.

    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 ``COVID-19 Commuter Benefits
Distribution Act''.

SEC. 2. TREATMENT OF CERTAIN DISTRIBUTIONS FROM TRANSPORTATION FRINGE
              BENEFIT ACCOUNTS.

    (a) In General.--In the case of any qualified payment from a
specified transportation fringe benefit account--
            (1) such qualified payment shall be includible in the gross
        income of the employee for the taxable year in which such
        qualified payment is made, and
            (2) the determination of whether any other payment from
        such account is a qualified transportation fringe for purposes
        of section 132 of the Internal Revenue Code of 1986 shall be
        determined without regard to such qualified payment.
    (b) Qualified Payment.--For purposes of this section, the term
``qualified payment'' means a one-time payment made during the 6-month
period beginning on the date of the enactment of this Act from a
specified transportation fringe benefit account to the employee for
whose benefit such account is maintained but only to the extent that
such payment does not exceed the highest balance of such account during
the period beginning on March 13, 2020, and ending on December 31,
2023.
    (c) Specified Transportation Fringe Benefit Account.--For purposes
of this section, the term ``specified transportation fringe benefit
account'' means, with respect to any employee, amounts set aside by
such employee's employer under a compensation reduction agreement
which--
            (1) provides for payments to such employee of amounts which
        are excludible under section 132 of the Internal Revenue Code
        of 1986 as a qualified transportation fringe (determined after
        the application of subsection (a)), and
            (2) provides that unused amounts at the end of a month may
        be carried forward to the succeeding month (subject to such
        requirements or limitations as such agreement, the Secretary of
        the Treasury, or the Secretary's delegate, may provide).
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