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H.R. 384House117th Congress (2021-2023)In Committee

Bicycle Commuter Act of 2021

Sponsored by Earl BlumenauerRep. Earl Blumenauer (D-OR)
Introduced January 21, 2021

AI-Generated Summary

Updated February 7, 2026 at 9:28 PM UTC

The Bicycle Commuter Act of 2021 changes the tax rules so that employers can give tax‑free benefits for a wider range of bike‑related commuting options. It adds bikeshare programs and low‑speed electric bicycles to the definition of qualified commuting, and it shifts the benefit limit from an annual amount to a monthly amount. The changes apply to employees who regularly use a bike or bikeshare to travel between home and work, starting with tax years after 2021.

Key Provisions

  • Repeals the previous suspension that stopped the tax exclusion for qualified bicycle commuting reimbursements.
  • Expands the definition of eligible commuting fringe benefits to include bikeshare services, bicycle improvements, repairs, and storage.
  • Adds a definition of "bikeshare" as a rental system where bicycles can be picked up and dropped off within a defined area.
  • Includes low‑speed electric bicycles (under 750 watts and under 20 mph) as qualified bicycles.
  • Redefines a "qualified bicycle commuting month" as any month the employee regularly uses a bike for part of the commute.
  • Changes the benefit limit from an annual cap to a monthly cap equal to 30 % of the existing annual amount.
  • Updates the aggregate limitation to count the new monthly limit for qualified commuting benefits.
  • Removes the exception that excluded qualified bicycle commuting reimbursements from constructive receipt rules.
  • Updates language throughout the code to replace "reimbursement" with "benefit" where appropriate.
  • Sets the amendments to take effect for taxable years beginning after December 31, 2021.

Legislative Activity

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3 earlier actions
HouseIntro Referral Latest Action

Referred to the House Committee on Ways and Means.

Ways and Means Committee

January 21, 2021

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HouseIntro Referral

Introduced in House

January 21, 2021

HouseIntro Referral

Sponsor introductory remarks on measure. (CR E54-55)

January 21, 2021

HouseCommittee

Referred to the Subcommittee on Health.

Health Subcommittee

January 21, 2021

HouseIntro Referral

Referred to the House Committee on Ways and Means.

Ways and Means Committee

January 21, 2021

Bill Text

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Introduced in HouseIssued January 21, 2021

I

117th CONGRESS

1st Session

H. R. 384

IN THE HOUSE OF REPRESENTATIVES

January 21, 2021

Mr. Blumenauer (for himself, Mr. Buchanan, and Ms. Pressley) introduced the following bill; which was referred to the Committee on Ways and Means

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.