- President Donald Trump's spending bill eliminated a bicycle commuter tax benefit.
- The benefit allowed employers to reimburse employees $20 a month for bike commuting expenses on a tax-free basis.
- Three Democrats in Congress introduced a bill to reinstate the bike commuter tax incentive.
Biking to work has a pannier full of benefits ranging from physical and mental health to financial to environmental.
Regular cycling improves cardiovascular fitness, strengthens muscles and eases stress. It also leads to cost savings on transportation and reduces your carbon footprint.
But with the passage of President Donald Trump’s “big beautiful bill,” a federal tax benefit for pedaling to the office no longer exists. Congress eliminated the Bicycle Commuter Tax Benefit, which allowed employers to reimburse employees $20 a month for bicycle commuting expenses on a tax-free basis.
Eligible expenses included the purchase of a bicycle, bicycle improvements, repair and storage. However, employees receiving other transportation considerations such as transit passes or parking spaces were not eligible for the bike commuter benefit.
Congress created the benefit as part of legislation in response to the 2008 financial crisis. It remained in effect until 2018 when it was suspended through 2025 as part of the Trump tax cuts. Federal lawmakers then erased it for good earlier this month.
A CNN report called it a “relatively cheap incentive that, at least in theory, would align with the ‘Make American Healthy Again’ sect of Trump loyalists.” The program cost the federal government about $5 million a year.
Bloomberg estimated that in 2022 about 731,000 Americans or .6% of all workers used bicycles as their primary means of transportation to work. While the number has increased over time, the percentage of bike commuters has remained relatively stable.
An effort to revive the commuter bike incentive
While the Republican-controlled Congress killed the bicycle commuter tax benefit, three Democrats filed a bill to restore it.
Sen. Peter Welch of Vermont and Sen. Alex Padilla and Rep. Mike Thompson, both of California, say the Bicycle Commuter Act of 2025 would allow cyclists to take advantage of the same tax benefits that incentivize Americans who take public transit or carpool, while also helping keep the air clean and reducing road congestion.
“The perks of biking to work are tenfold — saving commuters money, providing health benefits and helping reduce emissions," Welch said in a press release.
Added Thompson, “Cycling is efficient, low-cost and low-impact on our roads and the environment — in other words, it’s good for you and it’s good for our planet. Encouraging people to bike to work just makes sense."
The three lawmakers say the legislation would modernize the program to ensure cyclists can access pre-tax commuter benefits similar to those available for parking and public transit and allow recipients to claim the bicycle benefit in tandem with other commuter benefits. It would also allow electric bicycles and bikeshare and scootershare services to be eligible for the benefit.
They noted that cities and towns across the country are investing in bike- and pedestrian-friendly infrastructure to create safer, greener and more connected communities.
Several cycling-related organizations including the League of American Bicyclists, PeopleForBikes and Rail to Trails Conservancy support the measure.
“Americans have the freedom to commute to work however we choose and we should all get the same tax benefits on our chosen commutes to work,” said Bill Nesper, executive director of the League of American Bicyclists. “By incentivizing bike commuting, Congress can help reduce traffic on the roads, give parity to our commuter tax system, and ensure everyone gets home safely.”