COVID–19 Commuter Benefits Distribution Act

This bill allows employees to receive a one-time tax payment from their employer's commuter benefit account (like funds for transit passes or parking) that were previously tax-free. It directly affects employees who had unused commuter benefit funds set aside through their employer's plan between March 2020 and December 2023. The payment must be made within six months of the bill's enactment and cannot exceed the highest balance in the account during that period. The bill changes tax rules by making this one-time payment taxable income, while ensuring it doesn't reduce future tax-free commuter benefit limits.