COVID–19 Commuter Benefits Distribution Act

This bill changes the tax treatment of unused commuter benefit funds. It requires employees to include one-time distributions from transportation fringe benefit accounts (used for commuting costs) in their taxable income for the year they receive the payment. The distribution must occur within six months of the bill's enactment and cannot exceed the highest account balance since March 2020 or the current balance. This directly affects employees who had unused funds in these pre-tax commuter accounts, making those distributions taxable income instead of tax-exempt.