S.2023 - Bicycle Commuter Act of 2025 (119th Congress)
Summary
The Bicycle Commuter Act of 2025 aims to reinstate and expand employer-provided fringe benefits for bicycle commuting by amending the Internal Revenue Code of 1986. It repeals the suspension of the exclusion for qualified bicycle commuting benefits and broadens the definition of eligible expenses and commuting property. The bill also sets a limit on the exclusion at 30% of the dollar amount in effect under subparagraph (B) per month.
Expected Effects
This act will likely increase bicycle commuting by making it more financially attractive for employees. Employers may offer benefits related to bicycle commuting, including purchase, lease, repair, and storage, leading to potential shifts in transportation habits.
Potential Benefits
- Encourages environmentally friendly commuting options.
- Provides financial incentives for employees to choose healthier transportation methods.
- May reduce traffic congestion and parking demand, particularly in urban areas.
- Supports the bicycle industry through increased demand for bicycles and related services.
- Could improve employee health and well-being, leading to increased productivity.
Potential Disadvantages
- Potential administrative burden for employers to manage and track bicycle commuting benefits.
- Possible tax revenue loss due to the exclusion of these benefits from taxable income.
- Benefit may disproportionately favor higher-income employees who are more likely to bicycle commute.
- Risk of fraud or abuse related to reimbursement for bicycle-related expenses.
- Limited impact in areas with poor cycling infrastructure or unfavorable weather conditions.
Constitutional Alignment
The bill appears to align with the general welfare clause of the Constitution (Preamble), as it aims to promote healthier lifestyles and reduce environmental impact. Congress has the power to lay and collect taxes, duties, imposts and excises, to pay the debts and provide for the common defense and general welfare of the United States (Article I, Section 8). This bill uses the tax code to incentivize certain behaviors, which falls under this power.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).