Extension and modification of qualified transportation fringe benefits

(a) In general Section 132(f) is amended— (1) by striking subparagraph (D) of paragraph (1), (2) in paragraph (2), by inserting and at the end of subparagraph (A), by striking, and at the end of subparagraph (B) and inserting a period, and by striking subparagraph (C), (3) by striking (other than a qualified bicycle commuting reimbursement) in paragraph (4), (4) by striking subparagraph (F) of paragraph (5), and (5) by striking paragraph (8). (b) Inflation adjustment Clause (ii) of section 132(f)(6)(A) is amended by striking 1998 in clause (ii) and inserting 1997. (c) Coordination with disallowance of certain expenses Subsection (l) of section 274 is amended— (1) by striking benefits.— and all that follows through No deduction and inserting benefits.—No deduction, and (2) by striking paragraph (2). (d) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2025.

(a) In general Section 132(f) is amended— (1) by striking subparagraph (D) of paragraph (1), (2) in paragraph (2), by inserting and at the end of subparagraph (A), by striking, and at the end of subparagraph (B) and inserting a period, and by striking subparagraph (C), (3) by striking (other than a qualified bicycle commuting reimbursement) in paragraph (4), (4) by striking subparagraph (F) of paragraph (5), and (5) by striking paragraph (8). (b) Inflation adjustment Clause (ii) of section 132(f)(6)(A) is amended by striking 1998 in clause (ii) and inserting 1997. (c) Coordination with disallowance of certain expenses Subsection (l) of section 274 is amended— (1) by striking benefits.— and all that follows through No deduction and inserting benefits.—No deduction, and (2) by striking paragraph (2). (d) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2025.