§ 132.
(a)
Exclusion from gross income
Gross income shall not include any fringe benefit which qualifies as a—
(1)
no-additional-cost service,
(2)
qualified employee discount,
(3)
working condition fringe,
(5)
qualified transportation fringe,
(6)
qualified moving expense reimbursement,
(7)
qualified retirement planning services, or
(8)
qualified military base realignment and closure fringe.
(b)
No-additional-cost service defined
For purposes of this section, the term “no-additional-cost service” means any service provided by an employer to an employee for use by such employee if—
(1)
such service is offered for sale to customers in the ordinary course of the line of business of the employer in which the employee is performing services, and
(2)
the employer incurs no substantial additional cost (including forgone revenue) in providing such service to the employee (determined without regard to any amount paid by the employee for such service).
(c)
Qualified employee discount defined
For purposes of this section—
(1)
Qualified employee discount
The term “qualified employee discount” means any employee discount with respect to qualified property or services to the extent such discount does not exceed—
(A)
in the case of property, the gross profit percentage of the price at which the property is being offered by the employer to customers, or
(B)
in the case of services, 20 percent of the price at which the services are being offered by the employer to customers.
(2)
Gross profit percentage
(A)
In general
The term “gross profit percentage” means the percent which—
(i)
the excess of the aggregate sales price of property sold by the employer to customers over the aggregate cost of such property to the employer, is of
(ii)
the aggregate sale price of such property.
(B)
Determination of gross profit percentage
Gross profit percentage shall be determined on the basis of—
(i)
all property offered to customers in the ordinary course of the line of business of the employer in which the employee is performing services (or a reasonable classification of property selected by the employer), and
(ii)
the employer’s experience during a representative period.
(3)
Employee discount defined
The term “employee discount” means the amount by which—
(A)
the price at which the property or services are provided by the employer to an employee for use by such employee, is less than
(B)
the price at which such property or services are being offered by the employer to customers.
(4)
Qualified property or services
The term “qualified property or services” means any property (other than real property and other than personal property of a kind held for investment) or services which are offered for sale to customers in the ordinary course of the line of business of the employer in which the employee is performing services.
(h)
Certain individuals treated as employees for purposes of subsections (a)(1) and (2)
For purposes of paragraphs (1) and (2) of subsection (a)—
(1)
Retired and disabled employees and surviving spouse of employee treated as employee
With respect to a line of business of an employer, the term “employee” includes—
(A)
any individual who was formerly employed by such employer in such line of business and who separated from service with such employer in such line of business by reason of retirement or disability, and
(B)
any widow or widower of any individual who died while employed by such employer in such line of business or while an employee within the meaning of subparagraph (A).
(2)
Spouse and dependent children
(A)
In general
Any use by the spouse or a dependent child of the employee shall be treated as use by the employee.
(B)
Dependent child
For purposes of subparagraph (A), the term “dependent child” means any child (as defined in section 152(f)(1)) of the employee—
(i)
who is a dependent of the employee, or
(ii)
both of whose parents are deceased and who has not attained age 25.
For purposes of the preceding sentence, any child to whom section 152(e) applies shall be treated as the dependent of both parents.
(3)
Special rule for parents in the case of air transportation
Any use of air transportation by a parent of an employee (determined without regard to paragraph (1)(B)) shall be treated as use by the employee.
(Added [Pub. L. 98–369, div. A, title V, § 531(a)(1)], July 18, 1984, [98 Stat. 877]; amended [Pub. L. 99–272, title XIII, § 13207(a)(1)], (b)(1), Apr. 7, 1986, [100 Stat. 319]; [Pub. L. 99–514, title XI], §§ 1114(b)(5), 1151(e)(2)(A), (g)(5), title XVIII, §§ 1853(a), 1899A(5), Oct. 22, 1986, [100 Stat. 2451], 2506, 2507, 2870, 2958; [Pub. L. 100–647, title I, § 1011B(a)(31)(B)], title VI, § 6066(a), Nov. 10, 1988, [102 Stat. 3488], 3702; [Pub. L. 101–140, title II, § 203(a)(1)], (2), Nov. 8, 1989, [103 Stat. 830]; [Pub. L. 101–239, title VII], §§ 7101(b), 7841(d)(7), (19), Dec. 19, 1989, [103 Stat. 2304], 2428, 2429; [Pub. L. 102–486, title XIX, § 1911(a)]–(c), Oct. 24, 1992, [106 Stat. 3012–3014]; [Pub. L. 103–66, title XIII], §§ 13101(b), 13201(b)(3)(F), 13213(d)(1), (2), (3)(B), (C), Aug. 10, 1993, [107 Stat. 420], 459, 474; [Pub. L. 105–34, title IX, § 970(a)]