Bicycle Commuter Act of 2025
The Bicycle Commuter Act of 2025 would reinstate and expand the employer-provided fringe benefits for bicycle commuting that had been suspended, and broaden what counts as a qualifying benefit. The bill repeals the suspension of the exclusion for qualified bicycle commuting benefits and expands the types of qualifying property and arrangements that may be reimbursed or provided by employers (including bikes, electric bikes, various scooters, and bikeshare), as long as the employee regularly uses them to commute between home, work, and related facilities or connections to mass transit. It places a 30 percent cap on the monthly exclusion relative to the standard qualified transportation fringe amount and makes several conforming tax-law changes. The amendments apply to taxable years beginning after December 31, 2024 (i.e., starting with 2025). Overall, the bill aims to incentivize bicycle and micromobility commuting by restoring and broadening tax-advantaged fringe benefits for employers and employees.
Key Points
- 1Repeals the suspension and restores the exclusion for qualified bicycle commuting benefits under IRC section 132(f).
- 2Expands eligibility to include a wider range of qualified commuting property: bicycles (non-motorized), electric bicycles, 2- or 3-wheel scooters (with and without motors under certain limits), and bikeshare.
- 3Defines qualified commuting property and the criteria for an electric bicycle (power, speed caps, pedaling requirements, and required manufacturer certification).
- 4Allows both employer reimbursements and direct or indirect employer-provided use/improvements/storage of qualified commuting property, for employees who regularly use them for commuting to work or connecting transit.
- 5Introduces a cap: 30 percent of the monthly dollar amount in effect under the standard qualified transportation fringe (i.e., a limit on the exclusion amount for bicycle commuting).
- 6Clarifies tax treatment by removing a constructive receipt limitation and updating terminology from “reimbursement” to “benefit,” along with conforming amendments to related code provisions.
- 7Effective for taxable years beginning after December 31, 2024 (2025 tax year).