Commuting expense deduction

(a) In general Part VI of subchapter B of chapter 1 of subtitle A is further amended by redesignating section 225 as section 226 and inserting after section 224 the following new section: 225. Commuting expenses (a) In general In the case of an eligible individual, there shall be allowed as a deduction for the taxable year an amount equal to the qualified commuting expenses of the individual for such taxable year. (b) Qualified commuting expenses For purposes of this section, the term qualified commuting expenses means the amounts paid or incurred by the individual to use public transit to travel between such individual’s principal residence (as such term is used in section 121) and such individual’s place of work at which such individual works not less than 20 hours per week (determined by averaging the number of hours worked at such location during the taxable year over the number of weeks such individual is employed by the same employer at the same location during such taxable year). (c) Eligible individual (1) In general For purposes of this section, the term eligible individual means an individual whose modified adjusted gross income does not exceed— (A) $250,000 in the case of a joint return, and (B) $125,000 in the case of any other individual. (2) Modified adjusted gross income For purposes of this section, the term modified adjusted gross income means adjusted gross income increased by an amount excluded from gross income under sections 911, 931, and 933. (d) Regulations Not later than January 1, 2027, the Secretary shall issue such regulations or other guidance as may be necessary or appropriate to carry out the purposes of this section, including— (1) identifying qualified commuting expenses, and (2) establishing a process to verify such expenses incurred by individuals.. (b) Deduction allowed to non-Itemizers Section 63(b) is further amended by striking and at the end of paragraph (5), by striking the period at the end of paragraph (6) and inserting, and, and by adding at the end the following new paragraph: (7) the deduction provided in section 225.. (c) Clerical amendment The table of sections for part VI of subchapter B of chapter 1 of subtitle A is further amended by striking the item relating to section 225 (as amended by section 5) and inserting the following new items: Sec. 225. Commuting expenses. Sec. 226. Cross reference.. (d) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2026.