Bill would restore commuter tax credit

Rep. Pete King (R-N.Y.) has introduced legislation to renew the tax break for mass-transit commuters.

The tax break expired at the end of 2014, along with more than 50 other tax credits known as “tax extenders.” King’s bill would renew the credit for mass-transit commuters to the same level as the credit for commuter parking, raising it from $130 to $235 per month.

{mosads}Many of the seven Republican and Democratic lawmakers sponsoring the bill represent urban areas, where many people take advantage of the commuter tax credit. 

Congress has yet to reach an agreement on how to restore the tax credits for 2015, as the renewal passed in December was only applied retroactively. Last week, the House passed two packages to renew several tax credits for charitable giving and small businesses.

Republicans want to extend the tax breaks on a permanent basis to provide more certainty in the tax code. But Democrats argue that any permanent renewal should include spending offsets.