Qualified Transportation Fringe Law and Legal Definition

Qualified transportation fringe is a kind of benefit provided by an employer to an employee. It includes travel expenses that get favored treatment under the federal tax code. Most common qualified transportation fringe benefits provided to employees are qualified parking, transit pass, transportation in a commuter highway vehicle, and qualified bicycle commuting reimbursement.

The term "qualified transportation fringe" is defined under 26 USCS § 132 (f)(1) as any of the following provided by an employer to an employee:

(A) Transportation in a commuter highway vehicle if such transportation is in connection with travel between the employee's residence and place of employment;

(B) Any transit pass;

(C) Qualified parking;

(D) Any qualified bicycle commuting reimbursement.