Tax benefits for bicycle commuting: covering e-bikes, repairs, and storage.
This bill reinstates and expands tax benefits for employees who commute by bicycle. Employers can now reimburse employees for costs related to the purchase, lease, repair, and storage of bicycles, including electric bikes and electric scooters, without these amounts being counted as taxable income for the employee. This provides non-taxable financial support for workers using bicycles for commuting, effectively lowering their daily travel costs.
Key points
Reinstatement of the tax exclusion for qualified bicycle commuting benefits, which was previously suspended.
Expansion of eligible expenses: benefits now cover the purchase, lease, rental (including bikeshare), improvement, repair, or storage of commuting property.
Inclusion of electric bicycles (e-bikes) and qualified electric scooters in the definition of eligible commuting property.
The monthly tax exclusion limit for bicycle commuting benefits is set at 30% of the mass transit benefit limit.
The changes apply to taxable years beginning after December 31, 2022.
Expired
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