Bicycle Commuter Act of 2025
Sponsored By: Senator Peter Welch
Introduced
Summary
Reinstates and expands a tax-free employer benefit for bicycle commuting. This bill would restore the employer exclusion for qualified bicycle commuting benefits and broaden what counts as qualifying equipment and reimbursable expenses.
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- Employees and commuters would be able to receive tax-free employer reimbursements for purchases, leases, rentals (including bikeshare), improvements, repairs, and storage of qualifying commuting property. It covers expenses incurred during a 15-month period that starts the first day of a calendar year.
- More vehicles qualify. Qualified commuting property would include non-motor bicycles, electric bicycles that have pedals, a seat, and motors under 750 watts with speed limits on assistance (no assistance over 20 mph or, for pedal-assist only systems, no movement above 28 mph), plus certain two- and three-wheel scooters that meet speed and weight limits.
- Employers must follow new definitions and certification rules. Electric bicycles must be certified by the manufacturer, importer, or distributor to meet Consumer Product Safety Commission standards and the exclusion would apply to taxable years beginning after December 31, 2024, with a monthly exclusion capped at 30 percent of a referenced code amount.
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Bill Overview
Analyzed Economic Effects
2 provisions identified: 1 benefits, 1 costs, 0 mixed.
Tax-free bike commuting for workers
If enacted, the bill would restore a tax exclusion for employer-provided bicycle commuting benefits for tax years starting after December 31, 2024. You would be able to get tax-free help when your employer reimburses or provides qualifying bikes, electric bikes, certain scooters, or bikeshare access used regularly to get to work or to transit. The bill defines qualifying electric bikes (pedals, seat, motor under 750 watts, speed limits, and CPSC certification). The monthly tax-free amount for bicycle benefits would be limited to 30% of the base monthly amount in section 132(f). Reimbursements must follow timing rules tied to the calendar year and a 15-month reimbursement window.
New payroll timing rules for employers
If enacted, qualified bicycle commuting benefits would follow the general no-constructive-receipt rule starting for tax years after December 31, 2024. That change would affect when employees must include these benefits in income. Employers would likely need to change benefit timing, payroll, and reporting to avoid accidental income inclusion.
Sponsors & CoSponsors
Sponsor
Peter Welch
VT • D
Cosponsors
Sen. Padilla, Alex [D-CA]
CA • D
Sponsored 6/11/2025
Roll Call Votes
No roll call votes available for this bill.
View on Congress.gov