S. 2023: Bicycle Commuter Act of 2025

The Bicycle Commuter Act of 2025 aims to amend the Internal Revenue Code to enhance and reinstate employer-provided fringe benefits specifically for bicycle commuting. Here is a detailed breakdown of what the bill proposes:

Key Provisions

• Repeal of Previous Suspension: The bill seeks to eliminate a previous suspension that limited the exclusion of certain qualified bicycle commuting benefits from an employee's taxable income.
• Expansion of Bicycle Commuting Benefits: The bill modifies how qualified commuting benefits are defined. These benefits would now include employer reimbursements for various bicycle-related expenses incurred by employees, as well as direct provision of bicycle resources by employers.
• Employees would be reimbursed for costs incurred from the purchase, lease, rental, improvement, repair, or storage of bicycles and related materials (e.g., bicycles, electric bicycles, and non-motorized scooters).
• The bill also covers bikeshare programs, which provide a rental service for bicycles.
• Definitions: The bill clearly defines terms such as:
  • Qualified commuting benefit: Any benefit provided by the employer to support the use of bike commuting.
  • Qualified commuting property: Includes bicycles, electric bicycles, and certain scooters.
  • Electric bicycle: Defined by specific features and limitations to ensure compliance with safety standards.
  • Bikeshare: Defined as a rental service allowing users to pick up and drop off bicycles within a designated area.
• Exclusion Revisions: The bill amends existing tax code provisions regarding the exclusion amounts tied to bicycle commuting benefits, allowing for a maximum of 30% of a specified dollar amount per month as a qualified benefit.
• Administrative Updates: Various sections of the tax code would also be updated for consistency with the changes in the definition and provision of bicycle commuting benefits.
• Effective Date: The alterations proposed in this bill would start to apply from the beginning of the tax year following December 31, 2024.

Objectives

The primary objective of the Bicycle Commuter Act of 2025 is to encourage bicycle commuting by enhancing financial incentives for both employers and employees. The bill aims to:

• Promote environmentally friendly commuting options.
• Encourage physical activity among employees.
• Support the bicycle industry by increasing potential sales and rentals.

Impact on Employers

Employers would be allowed to provide more comprehensive benefits related to commuting via bicycles, which would help boost employee satisfaction and potentially reduce their overall transportation costs. There may also be tax benefits associated with these provided fringe benefits.

Potential Costs and Considerations

Employers would need to consider the administrative implications of implementing these bike commuter benefits, including tracking and processing reimbursements. Additionally, they would need to ensure compliance with the new definitions and regulatory standards outlined in the bill.

Relevant Companies

• DHR (Danaher Corporation) - As a company involved in tools and technologies, Danaher might find opportunities to expand into cycling-related health technologies or gadgets.
• THO (Thor Industries, Inc.) - This manufacturer of recreational vehicles may see an increase in demand for bike storage solutions accompanying their products.
• BIKE (Accell Group) - Being a bicycle manufacturer, this company could benefit directly from increased participation in bicycle commuting due to the incentives provided by this legislation.