UPDATE: The One Big Beautiful Bill Act was signed into law by President Trump on July 4, 2025, officially eliminating the bicycle commuter benefit.

Over the last month, lawmakers in Congress have been working feverishly to find cost savings in the government budget. In doing so, Congress advanced a bill that includes a provision to eliminate the Bicycle Commuter Benefit.

The Bicycle Commuter Benefit is a tax benefit that allows employees who bike to work to get a tax-free reimbursement from their employer. Specifically, it allows employers to reduce their federal tax bill by paying (and then claiming a business expense on) a $20/month reimbursement to employees for the costs associated with bicycle commuting.

This provision benefits riders, who enjoy cost savings for choosing to bike to work. The benefits are also multimodal — public transit can be more accessible by riding a bike for the first or last mile of a trip, driving fare revenue for transit agencies.

The tax incentive also benefits bike businesses. More people may buy a bike at their local bike shop or bring their bike in for a tune-up. Riders may also visit a local retailer to purchase a new helmet or new apparel to support their bicycle commuting. Upstream, the sales bump drives demand, increasing revenue for manufacturers and suppliers.

In 2009, Congress created the Bicycle Commuter Benefit as a matter of parity with other modes of transportation, since the same benefit already existed for employees who drive their car or take transit to work. The benefit was suspended in the 2017 Tax Cuts and Jobs Act until 2026.

PeopleForBikes fought this suspension, with our supporters sending 3,500 letters to members of Congress in all 50 states asking that this benefit be maintained. After the suspension, PeopleForBikes has strongly advocated for the Bicycle Commuter Act, which would reinstate and expand the benefit.

In May 2025, the House of Representatives voted to permanently eliminate the benefit. The bill is now being negotiated by the Senate.

The Bicycle Commuter Benefit is ultimately about expanding choice. By expanding the list of viable, affordable transportation options for commuters, the benefit gives more people more freedom to choose their preferred method of commuting. PeopleForBikes believes everyone has a right to choose how they get to work, and should enjoy the same tax benefits regardless of that choice.

Our federal policy team remains engaged on this issue and we will work with lawmakers to reinstate this helpful benefit for bike commuters nationwide. If you would like assistance in reaching out to your elected officials to tell them why the Bicycle Commuter Benefit is important to you and your community, please contact PeopleForBikes Director of Federal Policy Chris Bell at chris@peopleforbikes.org.