Bicycle Commuter Act of 2021

Bill: 117-s-1892
Sponsor: full_name: Sen. Brown, Sherrod [D-OH]
Introduced: 2021-05-27
Policy area: Taxation
Subjects: Commuting

Employee benefits and pensions

Hybrid, electric, and advanced technology vehicles

Income tax exclusion

Lease and rental services

Motor vehicles

Pedestrians and bicycling
Latest action: action_date: 2021-05-27
text: Read twice and referred to the Committee on Finance.

Summaries:
action_date: 2021-05-27
action_desc: Introduced in Senate
text: <p><b>Bicycle Commuter Act of 2021</b></p> <p>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 <i>bikeshare </i>(a bicycle rental operation providing for pick up and drop off) and <i>low-speed electric bicycle</i> within the definition of <i>bicycle </i>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).</p>

tv_txt: II 117th CONGRESS 1st Session S. 1892 IN THE SENATE OF THE UNITED STATES May 27, 2021 Mr. Brown (for himself, Mr. Wyden , and Mr. Cardin ) 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.

1. Short title This Act may be cited as the Bicycle Commuter Act of 2021 . 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.