Final regulations: Qualified transportation and commuting expenses under section 274 (text of regulations)

Qualified transportation and commuting expenses

The IRS this afternoon posted to its website a version of final regulations (T.D. 9939) that finalizes regulations proposed in June 2020, regarding changes to the rules under section 274 as amended by the 2017 U.S. tax law (Pub. L. No. 115-97) or that is the law that is often referred to as the “Tax Cuts and Jobs Act” (TCJA).


Provisions under the TCJA disallow a deduction for qualified transportation fringe benefits—including qualified parking—provided to an employee, effective for amounts paid or incurred after December 31, 2017.

The version of the final regulations [PDF 375 KB] (70 pages) released by the IRS today includes the following statement:

This document will be submitted to the Office of the Federal Register (OFR) for publication and will be pending placement on public display at the OFR and publication in the Federal Register. The version of the final regulations released today may vary slightly from the published document if minor editorial changes are made during the OFR review process. The document published in the Federal Register will be the official document.

The preamble to this version of the final regulations states that the regulations proposed in June 2020 are being finalized “with modifications in response to certain comments.” Read a June 2020 report about the proposed regulations: TaxNewsFlash

The purpose of this report is to provide text of the final regulations.

© 2022 KPMG LLP, a Delaware limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.

For more detail about the structure of the KPMG global organization please visit

The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.

Connect with us