“To amend the Internal Revenue Code of 1986 to modify employer-provided fringe benefits for bicycle commuting.”
No CRS summary available for this bill.
This section reinstates the exclusion from gross income for employer-provided qualified bicycle commuting fringe benefits (previously suspended after 2017 under IRC §132(f)(8)) and expands the scope of such benefits, effective for taxable years beginning after December 31, 2024. Specifically, it (1) redefines qualified bicycle commuting benefits to include employer reimbursements (over a 15-month period) or direct provision of bicycles (non-motorized), electric bicycles (pedals, seat, motor <750 watts, speed assistance limit of 20-28 mph, CPSC-certified), non-motorized 2- or 3-wheel scooters, electric scooters (motor assistance up to 20 mph, ≤100 pounds), and related expenses for purchase, lease, rental (including bikeshare), improvement, repair, or storage used for commuting between residence, work, parking, or mass transit; (2) increases the monthly exclusion limit to 30% of the amount under §132(f)(2)(B) (e.g., $90 if $300 limit, from prior fixed $20); (3) eliminates the constructive receipt exception for such benefits; and (4) makes conforming amendments, including allowing employer deductions by striking IRC §274(l)(2). (Thus, employers may again provide tax-free bicycle commuting benefits, now broadened to modern micromobility options like e-bikes and scooters, tied to the indexed transportation fringe limit.)