Restores and expands the tax exclusion for employer-provided bicycle commuting benefits so workers can receive a tax-free monthly benefit for biking (including specified electric bicycles and certain scooters) to and from work. It defines what counts as a qualified bicycle commuting benefit and qualified commuting property, sets a monthly dollar limit tied to an existing Code amount, makes conforming changes to the Internal Revenue Code, and sets an effective date for the changes.

The change affects employees who commute by bike or qualifying micro-mobility vehicles, employers who offer commuter benefits, payroll and benefits administrators, and retailers that sell e-bikes and commuter scooters. Employers will need to adopt or update benefit plans and payroll practices to comply with the new definitions and limits.