Code Section 132
| Code Section | Effective Date | Name of Act | Name of Provision | 10yr Revenue Estimate ($millions) |
|---|---|---|---|---|
| 132(f) | 12/31/2011 | The American Taxpayer Relief Act of 2012 | Parity for mass transit and parking benefits | -220 |
| 132 | 12/31/2010 | The Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 | Parity for exclusion from income for employer-provided mass transit and parking benefits | -136 |
| 132 | *2/17/2009 | The American Recovery and Reinvestment Act of 2009 (Public Law 111-5) | Parity for qualified transportation fringe benefits | -192 |
| 132 | 2/17/2009 | The Worker, Homeownership, and Business Assistance Act of 2009 | Exclusion from Gross Income of Qualified Military Base Realignment and Closure Fringe | -243 |
* Note on Effective Date
The provision is effective for months beginning on or after date of enactment (February 17, 2009). The provision does not apply to tax years beginning after December 31, 2010.
Parity for mass transit and parking benefits
Explanation of Provision
The provision extends parity in qualified transportation fringe benefits through December 31, 2013. Thus, for 2012, the monthly limit on the exclusion for combined transit pass and vanpool benefits is $240.
In order for the extension to be effective retroactive to January 1, 2012, expenses incurred during 2012 by an employee for employer-provided vanpool and transit benefits may be reimbursed (under a bona fide reimbursement arrangement) by employers on a tax-free basis to the extent they exceed $125 per month and are less than $240 per month. Congress intends that the rule that an employer reimbursement is excludible only if vouchers are not available to provide the benefit shall continue to apply, except in the case of reimbursements for vanpool or transit benefits between $125 and $240 for months during 2012. Further, Congress intends that reimbursements for expenses incurred for months during 2012 may be made in addition to the provision of benefits or reimbursements of up to $245 per month for expenses incurred during 2013.
Parity for exclusion from income for employer-provided mass transit and parking benefits
Explanation of Provision
The provision extends the parity in qualified transportation fringe benefits for one year (through December 31, 2011).
Parity for qualified transportation fringe benefits
Explanation of Provision246
The provision increases the monthly exclusion for employer-provided transit and vanpool benefits to the same level as the exclusion for employer-provided parking.
Exclusion from Gross Income of Qualified Military Base Realignment and Closure Fringe
Explanation of Provision
The Act expands the exclusion to HAP payments authorized under the American Recovery and Reinvestment Tax Act of 2009.
246- The provision was subsequently amended by section 727 of the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010, Pub. L. No. 111–312, described in Part Sixteen of this document.
-Return to Explanation of Provision
Back to Tax Tracker Codes Menu