Bicycle Commuter Act of 2023

Subjects: Taxation

Summary:  <p> <strong>Bicycle Commuter Act of 2023 </strong></p> <p>This bill reinstates and expands the tax exclusion for employer-provided fringe benefits for bicycle commuting. It allows employees a bicycle commuting benefit equal to 30% of parking fringe benefits. </p> <p>The bill repeals the suspension period (2018-2025) applicable to such tax exclusion and revises definitions applicable to bicycle commuting benefits to make electric bicycles and certain scooters eligible for the tax exclusion.</p>

<html><body><pre>[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 1724 Introduced in Senate (IS)]

&lt;DOC&gt;






118th CONGRESS
  1st Session
                                S. 1724

To amend the Internal Revenue Code of 1986 to modify employer-provided 
                 fringe benefits for bicycle commuting.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                              May 18, 2023

   Mr. Brown introduced the following bill; which was read twice and 
                  referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
To amend the Internal Revenue Code of 1986 to modify employer-provided 
                 fringe benefits for bicycle commuting.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Bicycle Commuter Act of 2023''.

SEC. 2. REINSTATEMENT AND EXPANSION OF EMPLOYER-PROVIDED FRINGE 
              BENEFITS FOR BICYCLE COMMUTING.

    (a) Repeal of Suspension of Exclusion for Qualified Bicycle 
Commuting Benefits.--Section 132(f) of the Internal Revenue Code of 
1986 is amended by striking paragraph (8).
    (b) Expansion of Bicycle Commuting Benefits.--Section 132(f)(5)(F) 
of such Code is amended to read as follows:
                    ``(F) Definitions related to bicycle commuting 
                benefits.--
                            ``(i) Qualified bicycle commuting 
                        benefit.--The term `qualified bicycle commuting 
                        benefit' means, with respect to any calendar 
                        year--
                                    ``(I) any employer reimbursement 
                                during the 15-month period beginning 
                                with the first day of such calendar 
                                year for reasonable expenses incurred 
                                by the employee during such calendar 
                                year for the purchase (including 
                                associated finance charges), lease, 
                                rental (including a bikeshare), 
                                improvement, repair, or storage of 
                                qualified commuting property, or
                                    ``(II) the direct or indirect 
                                provision by the employer to the 
                                employee during such calendar year of 
                                the use (including a bikeshare), 
                                improvement, repair, or storage of 
                                qualified commuting property,
                        if the employee regularly uses such qualified 
                        commuting property for travel between the 
                        employee's residence, place of employment, a 
                        qualified parking facility, or a mass transit 
                        facility that connects the employee to their 
                        residence or place of employment.
                            ``(ii) Qualified commuting property.--The 
                        term `qualified commuting property' means--
                                    ``(I) any bicycle (other than a 
                                bicycle equipped with any motor),
                                    ``(II) any electric bicycle,
                                    ``(III) any 2- or 3-wheel scooter 
                                (other than a scooter equipped with any 
                                motor), and
                                    ``(IV) any 2- or 3-wheel scooter 
                                propelled by an electric motor if such 
                                motor does not provide assistance if 
                                the speed of such scooter exceeds 20 
                                miler per hour (or if the speed of such 
                                scooter is not capable of exceeding 20 
                                miles per hour) and the weight of such 
                                scooter does not exceed 100 pounds.
                            ``(iii) Electric bicycle.--The term 
                        `electric bicycle' means a bicycle which is 
                        equipped with fully operable pedals, a saddle 
                        or seat for the rider, and an electric motor 
                        which is less than 750 watts, designed to 
                        provide assistance in propelling the bicycle, 
                        and--
                                    ``(I) does not provide such 
                                assistance if the bicycle is moving in 
                                excess of 20 miler per hour, or
                                    ``(II) if such motor only provides 
                                such assistance when the rider is 
                                pedaling, does not provide such 
                                assistance if the bicycle is moving in 
                                excess of 28 miles per hour.
                            ``(iv) Bikeshare.--The term `bikeshare' 
                        means a rental operation at which qualified 
                        commuting property is made available to 
                        customers to pick up and drop off for point-to-
                        point use within a defined geographic area.''.
    (c) Limitation on Exclusion.--Section 132(f)(2)(C) of such Code is 
amended to read as follows:
                    ``(C) 30 percent of the dollar amount in effect 
                under subparagraph (B) per month in the case of any 
                qualified bicycle commuting benefit.''.
    (d) No Constructive Receipt.--Section 132(f)(4) of such Code is 
amended by striking ``(other than a qualified bicycle commuting 
reimbursement)''.
    (e) Conforming Amendments.--
            (1) Section 132(f)(1)(D) of such Code is amended by 
        striking ``reimbursement'' and inserting ``benefit''.
            (2) Section 274(l) of such Code is amended by striking 
        paragraph (2).
    (f) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2022.
                                 &lt;all&gt;
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