106 STAT. 3014 PUBLIC LAW 102-486—OCT. 24, 1992 "(D) TRANSPORTATION PROVIDED BY EMPLOYER. — Transportation referred to in paragraph (I)(A) shall be considered to be provided by an employer if such transportation is furnished in a commuter highway vehicle operated by or for the employer. "(E) EMPLOYEE.— For purposes of this subsection, the term 'employee' does not include an individual who is an employee within the meaning of section 40l(c)(l). "(6) INFLATION ADJUSTMENT.—In the case of any taxable year beginning in a calendar year after 1993, the dollar amounts contained in paragraph (2)(A) and (B) shall be increased by an amount equal to— "(A) such dollar amount, multiplied by "(B) the cost-of-living a4}ustment determined under section l(f)(3) for the calendar year in which the taxable year begins, determined by substituting 'calendar year 1992' for 'calendar year 1989' in subparagraph (B) thereof. If any increase determined under the preceding sentence is not a multiple of $5, such increase shall be rounded to the next lowest multiple of $5. "(7) COORDINATION WITH OTHER PROVISIONS.—For purposes of this section, the terms 'working condition fringe' and 'de minimis fringe' shall not include any qualified transportation fringe (determined without regard to paragraph (2))." (c) CONFORMING AMENDMENT.— Subsection (i) of section 132 (as redesignated by subsection (b)) is amended by striking paragraph (4) and redesignating the following pcuragraphs accordingly. 26 USC 132 note. (d) EFFECTIVE DATE. —The amendments made by this section shall apply to benefits provided after December 31, 1992. SEC. 1912. EXCLUSION OF ENERGY CONSERVATION SUBSIDIES PRO- VIDED BY PUBLIC UTILITIES. (a) GENERAL RULE.— Part III of subchapter B of chapter 1 (relating to amounts specifically excluded from gross income) is amended by redesignating section 136 as section 137 and by inserting after section 135 the following new section: •SEC. 136. ENERGY CONSERVATION SUBSIDIES PROVIDED BY PUBLIC UTILmES. "(a) EXCLUSION.— "(1) IN GENERAL. — Gross income shall not include the value of any subsidy provided (directly or indirectly) by a public utility to a customer for the purchase or installation of any energy conservation measure. " (2) LIMITATION ON EXCLUSION FOR NONRESIDENTIAL PROP- ERTY. — "(A) IN GENERAL.—In the case of any subsidy provided with respect to any energy conservation measure referred to in subsection (c)(l)(B), onlv the applicable percentage of such subsidy shall be excluded from gross income under paragraph (1). ^B) APPLICABLE PERCENTAGE. —For purposes of subparagraph (A), the term 'applicable percentage means— "(i) 40 percent in the case of subsidies provided during 1995, "(ii) 50 percent in the case of subsidies provided during 1996, and
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