Bicycle Commuter Act of 2025

Key Points

• The bill brings back a tax benefit that let workers use pre-tax dollars for bike commuting costs. This benefit was paused by a previous tax law but would now become a permanent option for employers to offer.
• Workers could use the money for more than just buying a bike. It covers repairs, storage, safety improvements, and even monthly fees for bike-sharing programs or renting electric scooters.
• For the first time, electric bikes and electric scooters would qualify for the benefit. To count, e-bikes must have pedals and a motor under 750 watts, while e-scooters must weigh under 100 pounds and stay under 20 miles per hour.
• The monthly benefit would be capped at 30 percent of what people get for parking or bus passes. Based on current tax limits, this would likely mean workers could set aside about 95 dollars each month without paying taxes on that income.
• Employees could choose to have this money taken out of their paychecks before taxes are calculated. This works like health insurance or retirement contributions to lower a worker's overall tax bill while helping pay for their commute.

Impact Analysis

Govbase has not yet run an impact analysis on this legislation.