Bicycle Commuter Act of 2025

Reinstates and expands a tax-free employer fringe benefit for bicycle commuting and related micromobility devices. The change defines qualified bicycle commuting benefits and covered property (bicycles, e-bikes, and certain scooters), sets a monthly cap equal to 30% of the relevant dollar amount, updates related wording in the tax code, and applies to taxable years beginning after December 31, 2024.

The law lets employers provide a pre-tax benefit for employees who commute using covered devices, reduces employees' taxable income for those benefits, and requires employers and payroll systems to adopt the new definitions and monthly limit.