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October 14, 2017

Senate Eliminates Bike Tax Benefit in Tax Plan

By: PeopleForBikes Staff

Bikers in a bike lane
Bikers in a bike lane

The U.S. Senate majority leadership removed the bike commuter benefit from the tax plan they released in late November. The bike commuter benefit is a $20-per-month tax-free reimbursement that employers can pay their employees for expenses related to bicycle commuting.

“The cost of the federal bike commuter benefit is paid primarily by employers, and its tax-free provision costs the federal government only $5 million per year,” said PeopleForBikes’ president, Tim Blumenthal. “The benefits to both individuals and communities far exceed the cost. This modest reimbursement program has helped bike commuting grow by more than 50 percent nationwide during the last decade—easing road congestion, promoting good health, and supporting a crucial, economical mode of transportation for hardworking, low-income Americans.”

PeopleForBikes supports the House version of the bill for its continuation of the bike commuting benefit. The two versions of the bill may be reconciled later this month by a Senate/House conference.

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