Subtracts from federal adjusted gross income qualified transportation fringe benefits

This bill modifies the Internal Revenue Code to change how certain transportation benefits are taxed for individuals. It requires that the value of qualified transportation fringe benefits, such as transit passes or vanpooling, be included in a taxpayer's federal adjusted gross income starting for tax years beginning after December 31, 2022. The legislation effectively removes the previous exclusion that allowed these benefits to be tax-free, ensuring they are counted as taxable income. Additionally, the bill includes a provision to adjust the calculation if specific dollar limits for these benefits are increased or decreased in future months.