S 2023119th CongressIn Committee

Bicycle Commuter Act of 2025

Introduced: Jun 11, 2025

Economy & TaxesEnvironment & Climate

Standard Summary

Comprehensive overview in 1-2 paragraphs

The Bicycle Commuter Act of 2025 would restore and expand the employer-provided fringe benefit for bicycle commuting that was previously suspended, making it easier for employees to receive tax-advantaged assistance for bicycle-related expenses. The bill broadens what counts as a qualified bicycle commuting benefit, adding a wider range of property and arrangements that employers can reimburse or provide directly. It also tightens how the exclusion from income is calculated and clarifies certain tax rules, with an effective date applying to taxable years beginning after December 31, 2024. In short, the bill aims to encourage bike commuting by offering more comprehensive and accessible tax-free benefits to employees who use bicycles, e-bikes, or certain motorized scooters for work commutes.

Key Points

1Repeal of suspension and expansion of the fringe benefit: The bill repeals the suspension of the exclusion for qualified bicycle commuting benefits and expands what can be reimbursed or provided by employers (including purchases, leases, rentals, improvements, repairs, or storage of qualifying property, or direct employer provision of such property).
2Expanded definitions of qualified commuting property: Qualifying items include:
3- Bicycles (non-motorized)
4- Electric bicycles (e-bikes)
5- 2- or 3-wheel scooters (non-motorized)
6- Certain motorized 2- or 3-wheel scooters that meet specific speed and weight limits (max 20 mph assistance; weight not exceeding 100 pounds; or other constraints described)
7- A clear, manufacturer-certified standard for electric bicycles (under 750 watts, pedal assist, and speed constraints)
8- Bikeshare facilities (defined as rental operations within a defined area)
9Eligibility of benefits: A qualified bicycle commuting benefit is available for:
10- Reimbursements for reasonable expenses during the year for purchase, lease, rental (including bikeshare), improvement, repair, or storage of qualified commuting property
11- Direct or indirect employer-provided use of the qualifying property
12- Conditions: Regular use of the property to travel between the employee’s residence, place of employment, a qualified parking facility, or a mass transit facility that connects to residence or work
13Tax treatment and exclusions: The bill sets a 30 percent limit on the amount of the benefit that can be excluded from income per month, per the related subparagraph of the Internal Revenue Code.
14Administrative and regulatory adjustments: The act removes a clause related to constructive receipt for bicycle commuting reimbursements and makes conforming language changes to ensure consistency with the expanded benefits. It also references compliance with related rules (e.g., those in CFR 1512) for the electric bicycle standard.
15Effective date: The changes apply to taxable years beginning after December 31, 2024 (i.e., generally for 2025 and later).

Impact Areas

Primary group/area affected:- Employees who bike or use qualifying bicycles/e-scooters for commuting- Employers who want to offer or administer bicycle commuting fringe benefits (H.R./Payroll and Benefits teams)Secondary group/area affected:- Bicycle retailers, e-bike manufacturers, and bikeshare operators (as demand and program adoption grow)- Tax professionals and payroll administrators who must implement the expanded definitions and annual reimbursement/benefit calculationsAdditional impacts:- Potential environmental and traffic benefits from increased cycling and reduced car commuting- Administrative costs and compliance considerations for employers (recordkeeping, eligibility determinations, and ensuring vehicles meet the defined standards)- Local governments and transportation planners may see indirect effects as cycling adoption trends shift commuting patternsQualified bicycle commuting benefit: The tax-free value employers can provide for eligible bicycle-related expenses or use.Qualified commuting property: The types of bikes and related equipment that qualify for the benefit, including specific limitations for motorized scooters and electric bikes.Bikeshare: A rental program that offers bikes for short-term use within a defined area.Constructive receipt: A tax concept about when income is considered received for tax purposes; the bill modifies its application to these benefits.

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