Bicycle Commuter Act of 2021
Bill: S.1892 | Sponsor: Sen. Brown, Sherrod (D-OH)
Policy area: Taxation

Summary:
Bicycle Commuter Act of 2021
This bill modifies provisions relating to the tax exclusion for employer-provided fringe benefits for bicycle commuting. Specifically, the bill (1) repeals the suspension (for the period between 2018 and the end of 2025) of the exclusion, (2) includes bikeshare (a bicycle rental operation providing for pick up and drop off) and low-speed electric bicycle within the definition of bicycle for purposes of the exclusion, and (3) modifies the limitation on the exclusion to provide for a specified monthly limitation amount (i.e., 30% of the parking fringe benefit amount).

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 2021''.

SEC. 2. MODIFICATION OF EMPLOYER-PROVIDED FRINGE BENEFITS FOR BICYCLE 
              COMMUTING.

    (a) Repeal of Suspension of Exclusion for Qualified Bicycle 
Commuting Reimbursement.--Section 132(f) of the Internal Revenue Code 
of 1986 is amended by striking paragraph (8).
    (b) Commuting Fringe Includes Bikeshare.--
            (1) In general.--Clause (i) of section 132(f)(5)(F) of such 
        Code is amended by striking ``a bicycle'' and all that follows 
        and inserting ``bikeshare, a bicycle, and bicycle improvements, 
        repair, and storage, if the employee regularly uses such 
        bikeshare or bicycle for travel between the employee's 
        residence and place of employment or mass transit facility that 
        connects an employee to their place of employment.''.
            (2) Bikeshare.--Section 132(f)(5)(F) of such Code is 
        amended by adding at the end the following:
                            ``(iv) Bikeshare.--The term `bikeshare' 
                        means a bicycle rental operation at which 
                        bicycles are made available to customers to 
                        pick up and drop off for point-to-point use 
                        within a defined geographic area.''.
    (c) Low-Speed Electric Bicycles.--Section 132(f)(5)(F) of such 
Code, as amended by subsection (b)(2), is amended by adding at the end 
the following:
                            ``(v) Low-speed electric bicycles.--The 
                        term `bicycle' includes a two- or three-wheeled 
                        vehicle with fully operable pedals and an 
                        electric motor of less than 750 watts (1 h.p.), 
                        whose maximum speed on a paved level surface, 
                        when powered solely by such a motor while 
                        ridden by an operator who weighs 170 pounds, is 
                        less than 20 mph.''.
    (d) Modification Relating to Bicycle Commuting Month.--Clause (iii) 
of section 132(f)(5)(F) of such Code is amended to read as follows:
                            ``(iii) Qualified bicycle commuting 
                        month.--The term `qualified bicycle commuting 
                        month' means, with respect to any employee, any 
                        month during which such employee regularly uses 
                        a bicycle for a portion of the travel between 
                        the employee's residence and place of 
                        employment.''.
    (e) Limitation on Exclusion.--
            (1) In general.--Subparagraph (C) of section 132(f)(2) of 
        such Code is amended by striking ``applicable annual 
        limitation'' and inserting ``applicable monthly limitation''.
            (2) Applicable monthly limitation defined.--Clause (ii) of 
        section 132(f)(5)(F) of such Code is amended to read as 
        follows:
                            ``(ii) Applicable monthly limitation.--The 
                        term `applicable monthly limitation', with 
                        respect to any employee for any month, means an 
                        amount equal to 30 percent of the dollar amount 
                        in effect for the month under paragraph 
                        (2)(B).''.
            (3) Aggregate limitation.--Subparagraph (B) of section 
        132(f)(2) of such Code is amended by inserting ``and the 
        applicable monthly limitation in the case of any qualified 
        bicycle commuting benefit''.
    (f) No Constructive Receipt.--Paragraph (4) of section 132(f) of 
such Code is amended by striking ``(other than a qualified bicycle 
commuting reimbursement)''.
    (g) Conforming Amendments.--Paragraphs (1)(D), (2)(C), and (5)(F) 
of section 132(f) of such Code are each amended by striking 
``reimbursement'' each place it appears and inserting ``benefit''.
    (h) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2021.
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