Bicycle Commuter Act of 2025

This bill brings back and expands a tax-free work benefit for people who bike (or use certain scooters) to get to work. Employers could reimburse you or directly provide things like a bike or e‑bike, bikeshare access, repairs, improvements, or storage, if you regularly use it to travel between home, work, parking, or transit. The benefit is capped at 30% of the usual monthly limit for employer transportation benefits.

It also broadens what “counts.” Regular bicycles, e‑bikes, and small 2‑ or 3‑wheel scooters are covered. E‑bikes must have pedals and a small motor; certain lightweight e‑scooters that don’t go over 20 mph are included. Bikeshare rentals are eligible, too.

• Who is affected: Employees who commute by bike, e‑bike, bikeshare, or certain scooters; employers that offer transportation benefits.
• What changes: Tax-free bike commuting benefits return and now cover buying, leasing, renting (including bikeshare), improving, repairing, and storing eligible bikes/scooters; the monthly tax-free amount is limited to 30% of the standard transportation benefit limit.
• When: Applies starting with tax years after December 31, 2024.