Employers Can’t Deduct Cost of Providing Qualified Transportation Benefits
February 14, 2018
The Tax Cuts and Jobs Act was signed into law on December 22, 2017. Included in the law is a change that affects employers providing qualified transportation benefits.
The act provides that no deduction is allowed for the expense of a qualified transportation fringe, as defined in Code § 132(f), provided to an employee of the taxpayer (the employer).
The act doesn't change the employee's exclusion of the benefit from income under Code § 132, except in the case of qualified bicycle commuting reimbursements.
These changes are effective for amounts incurred or paid after Dec. 31, 2017. The exception for qualified bicycle commuting reimbursements applies for amounts paid or incurred after Dec. 31, 2017, and before Jan. 1, 2026.
Additional details:
H.R.1