Transit Tax Credit Act of 2016

“36C. Commuting mass transit costs

“(a) In general—In the case of an individual, there shall be allowed as a credit against the tax imposed by this subtitle for such taxable year an amount equal to 15 percent of the amount paid or incurred by the taxpayer during such taxable year for a transit pass (as defined in section 132(f)(5)(A)) for use by the taxpayer or the taxpayer’s spouse or dependents for travel between the residence and place of employment of such taxpayer, spouse, or dependent, as the case may be.

“(b) Requirement of employment without qualified transportation fringe—No credit shall be allowable under this section with respect to transit passes for use by any individual unless—

“(1) such individual is an employee at any time during the taxable year, and

“(2) no amount is excludable from gross income as a qualified transportation fringe under section 132 with respect to such individual for the taxable year.

“(c) Dollar limitation

“(1) In general—The credit allowed under subsection (a) with respect to transit passes for use by any individual for any taxable year shall not exceed $460.

“(2) Adjustment for inflation—In the case of any taxable year beginning after December 31, 2017, the dollar amount in paragraph (1) shall be increased by an amount equal to—

“(A) such dollar amount, multiplied by

“(B) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting “calendar year 2016” for “calendar year 1992” in subparagraph (B) thereof.”