Bicycle Commuter Act of 2021

Bicycle Commuter Act of 2021

This bill modifies provisions relating to the tax exclusion for employer-provided fringe benefits for bicycle commuting. Specifically, the bill (1) repeals the suspension (for the period between 2018 and the end of 2025) of the exclusion, (2) includes bikeshare (a bicycle rental operation providing for pick up and drop off) and low-speed electric bicycle within the definition of bicycle for purposes of the exclusion, and (3) modifies the limitation on the exclusion to provide for a specified monthly limitation amount (i.e., 30% of the parking fringe benefit amount).

Bill 117 HR 384, also known as the Bicycle Commuter Act of 2021, aims to encourage more people to commute to work using bicycles by providing tax incentives. The bill proposes to amend the Internal Revenue Code to allow for a tax credit of up to $53 per month for eligible bicycle commuters.

To qualify for the tax credit, individuals must regularly commute to work by bicycle and not receive any other transportation benefits from their employer. The tax credit can be used to offset the costs of purchasing, maintaining, and storing a bicycle used for commuting purposes.

The bill also includes provisions for employers, allowing them to offer tax-free reimbursements of up to $20 per month to employees who regularly commute to work by bicycle. This reimbursement can cover expenses such as bicycle repairs, maintenance, and storage. Overall, the Bicycle Commuter Act of 2021 aims to promote environmentally friendly transportation options and reduce traffic congestion by incentivizing bicycle commuting. The bill is currently under consideration in the House of Representatives and has garnered bipartisan support.