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Tax Benefits for Bicycle Commuting: New Rules and Employee Advantages

This act reinstates and expands tax benefits for employees who commute by bicycle. This means employers can once again offer reimbursements for bicycle commuting expenses, including bikeshare and electric bicycles, potentially reducing transportation costs for many individuals.
Key points
Employers can once again reimburse bicycle commuting expenses, which were previously suspended.
The benefit now includes bikeshare systems and costs for bicycle improvements, repair, and storage.
The definition of 'bicycle' is expanded to include low-speed electric bicycles (under 20 mph and 750W).
The monthly reimbursement limit will be 30% of the monthly limit for other transportation benefits, offering more flexibility.
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Additional Information
Print number: 117_HR_384
Sponsor: Rep. Blumenauer, Earl [D-OR-3]
Process start date: 2021-01-21