Thompson Introduces Bicameral Bill to Reinstate and Modernize Bicycle Commuter Tax Benefit, Encourage Biking to Work


Press Release

Posted:

Washington – Representative Mike Thompson (D-CA-04) today joined Senator Peter Welch (D-VT) and Senator Alex Padilla (D-CA) to introduce the Bicycle Commuter Act of 2025, bicameral legislation that would reinstate and expand the Bicycle Benefit Subsidy Program’s non-taxable bicycle commuter benefit to encourage more Americans to bike to work.

“Cycling is efficient, low-cost, and low-impact on our roads and the environment — in other words, it’s good for you and for our planet. Encouraging people to bike to work just makes sense,” said Thompson, Co-Chair of the Congressional Bike Caucus. “I’m glad to work with Senators Welch and Padilla on this bicameral legislation restoring and modernizing bike commuters’ tax benefits.”

“The perks of biking to work are tenfold–saving commuters money, providing health benefits, and helping reduce emissions. An increasing number of Vermonters have recognized those benefits, with the number of cycling commuters doubling in the Green Mountain State in the past decade. But there’s more that we can do to strengthen biking infrastructure to help more folks around the country enjoy the advantages of cycling to work,” said Senator Welch. “Our bicameral legislation will reinstate and modernize the bicycling tax benefit to encourage more commuters around the country to get to work by riding a bicycle.”

“Biking to work is good for our planet, our health, and our wallets,” said Senator Padilla. “The Bicycle Commuter Act would allow cyclists to take advantage of the same tax benefits that incentivize hardworking Americans to commute via public transit or carpool, while also helping keep our air clean and reduce congestion on our roads. It would also expand these commuter tax benefits to e-bikes, bikeshares, and certain scooters, further encouraging bike ridership and putting money back in the pockets of workers.”

In 2009, Congress created the Bicycle Benefit Subsidy Program to encourage more workers to bike to their jobs by allowing employers to offer a non-taxable reimbursement of up to $20 per month for expenses related to bicycle commuting. However, employees who elected to participate in the program were forced to forfeit other commuter benefits, such as those provided for parking or transit. The non-taxable bicycle commuter benefit was suspended until 2026 by the Tax Cuts and Jobs Act of 2017, eliminating this vital financial incentive for employees who bike to work.

The Bicycle Commuter Act of 2025 would modernize the Bicycle Benefit Subsidy Program to ensure cyclists can access pre-tax commuter benefits similar to those available for parking and public transit and allow recipients to claim the bicycle benefit in tandem with other commuter benefits. The bicameral legislation would also allow electric bicycles and bikeshare and scootershare services to be eligible for the benefit.

The Bicycle Commuter Act is supported by the Association for Commuter Transportation, League of American Bicyclists, North American Bikeshare and Scootershare Association, PeopleForBikes, Rails to Trails Conservancy, Safe Routes Partnership, and Sierra Club.

Read and download the full text of the bill.