Bill Summary
This legislation, known as the Bicycle Commuter Act of 2025, proposes changes to the Internal Revenue Code of 1986 in order to modify the employer-provided fringe benefits for bicycle commuting. It is intended to encourage and support individuals who use bicycles as their mode of transportation to and from work. The Act repeals the suspension of exclusion for qualified bicycle commuting benefits and expands the definition of what qualifies as a bicycle commuting benefit. It also sets limitations on the exclusion amount and ensures that there is no constructive receipt of benefits. The changes made by this legislation will take effect for taxable years beginning after December 31, 2024.
Possible Impacts
1. Positive Impact on Commuters: The Bicycle Commuter Act of 2025 would provide a financial incentive for individuals to commute to work using a bicycle. This would encourage more people to adopt environmentally friendly modes of transportation, leading to a reduction in carbon emissions and promoting healthier lifestyles.
2. Increased Employee Benefits: The Act would expand the definition of qualified commuting property to include electric bicycles and scooters, providing employees with more options for their commute and potentially increasing their job satisfaction.
3. Potential Impact on Employers: Employers may bear additional costs as they are required to reimburse employees for qualified commuting expenses. This could potentially impact their bottom line and lead to changes in employee benefits packages.
[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3936 Introduced in House (IH)]
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119th CONGRESS
1st Session
H. R. 3936
To amend the Internal Revenue Code of 1986 to modify employer-provided
fringe benefits for bicycle commuting.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
June 11, 2025
Mr. Thompson of California introduced the following bill; which was
referred to the Committee on Ways and Means
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to modify employer-provided
fringe benefits for bicycle commuting.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Bicycle Commuter Act of 2025''.
SEC. 2. REINSTATEMENT AND EXPANSION OF EMPLOYER-PROVIDED FRINGE
BENEFITS FOR BICYCLE COMMUTING.
(a) Repeal of Suspension of Exclusion for Qualified Bicycle
Commuting Benefits.--Section 132(f) of the Internal Revenue Code of
1986 is amended by striking paragraph (8).
(b) Expansion of Bicycle Commuting Benefits.--Section 132(f)(5)(F)
of such Code is amended to read as follows:
``(F) Definitions related to bicycle commuting
benefits.--
``(i) Qualified bicycle commuting
benefit.--The term `qualified bicycle commuting
benefit' means, with respect to any calendar
year--
``(I) any employer reimbursement
during the 15-month period beginning
with the first day of such calendar
year for reasonable expenses incurred
by the employee during such calendar
year for the purchase (including
associated finance charges), lease,
rental (including a bikeshare),
improvement, repair, or storage of
qualified commuting property, or
``(II) the direct or indirect
provision by the employer to the
employee during such calendar year of
the use (including a bikeshare),
improvement, repair, or storage of
qualified commuting property,
if the employee regularly uses such qualified
commuting property for travel between the
employee's residence, place of employment, a
qualified parking facility, or a mass transit
facility that connects the employee to their
residence or place of employment.
``(ii) Qualified commuting property.--The
term `qualified commuting property' means--
``(I) any bicycle (other than a
bicycle equipped with any motor),
``(II) any electric bicycle,
``(III) any 2- or 3-wheel scooter
(other than a scooter equipped with any
motor), and
``(IV) any 2- or 3-wheel scooter
propelled by an electric motor if such
motor does not provide assistance if
the speed of such scooter exceeds 20
miler per hour (or if the speed of such
scooter is not capable of exceeding 20
miles per hour) and the weight of such
scooter does not exceed 100 pounds.
``(iii) Electric bicycle.--The term
`electric bicycle' means a bicycle which is--
``(I) equipped with--
``(aa) fully operable
pedals,
``(bb) a saddle or seat for
the rider, and
``(cc) an electric motor
which is less than 750 watts,
designed to provide assistance
in propelling the bicycle,
and--
``(AA) does not
provide such assistance
if the bicycle is
moving in excess of 20
miler per hour, or
``(BB) if such
motor only provides
such assistance when
the rider is pedaling,
does not provide such
assistance if the
bicycle is moving in
excess of 28 miles per
hour, and
``(II) certified by the
manufacturer, importer, or distributor
of such bicycle to comply with the
requirements under part 1512 of title
16, Code of Federal Regulations (or any
successor regulations issued by the
Consumer Product Safety Commission).
``(iv) Bikeshare.--The term `bikeshare'
means a rental operation at which qualified
commuting property is made available to
customers to pick up and drop off for point-to-
point use within a defined geographic area.''.
(c) Limitation on Exclusion.--Section 132(f)(2)(C) of such Code is
amended to read as follows:
``(C) 30 percent of the dollar amount in effect
under subparagraph (B) per month in the case of any
qualified bicycle commuting benefit.''.
(d) No Constructive Receipt.--Section 132(f)(4) of such Code is
amended by striking ``(other than a qualified bicycle commuting
reimbursement)''.
(e) Conforming Amendments.--
(1) Section 132(f)(1)(D) of such Code is amended by
striking ``reimbursement'' and inserting ``benefit''.
(2) Section 274(l) of such Code is amended by striking
paragraph (2).
(f) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2024.
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