COVID–19 Commuter Benefits Distribution Act

This bill, known as the COVID-19 Commuter Benefits Distribution Act, changes tax rules for employees who have employer-sponsored commuter benefits accounts. It allows these employees to take a one-time cash payment from their accounts during a six-month window starting when the law is passed, treating this money as taxable income rather than tax-free. The amount they can withdraw is limited to the highest balance in their account held between March 13, 2020, and December 31, 2023. Additionally, the bill ensures that taking this cash payment does not reduce the amount of future tax-free benefits the employee can receive from the same account.