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Legislative bills

Bicycle Commuter Act of 2025: Promoting Easier, Healthier Commutes Through Tax Incentives

Strategic Insights

— 1 min read

U.S. Senator Peter Welch (D-Vermont) and U.S. Representative Mike Thompson (D-CA-04) have introduced the Bicycle Commuter Act of 2025, bicameral legislation that aims to reinstate and modernize the Bicycle Benefit Subsidy Program's non-taxable bicycle commuter benefit. This legislation seeks to encourage more Americans to bike to work by providing a pre-tax commuter benefit for bicycle commuters, similar to those available for parking and public transit. The bill also allows electric bicycles, bikeshare, and scootershare services to be eligible for the benefit, and its supporters include various organizations such as the Association for Commuter Transportation (ACT) and the League of American Bicyclists.

Key Takeaways:

  • The Bicycle Commuter Act of 2025 aims to reinstate and modernize the Bicycle Benefit Subsidy Program's non-taxable bicycle commuter benefit to encourage more Americans to bike to work.
  • The legislation seeks to provide a pre-tax commuter benefit for bicycle commuters, similar to those available for parking and public transit.
  • Electric bicycles, bikeshare, and scootershare services will be made eligible for the benefit.
  • The bill has the support of organizations such as the Association for Commuter Transportation (ACT) and the League of American Bicyclists.
  • Vermont has seen an increase in the number of cycling commuters, with the number of Chittenden County residents biking to work doubling since 2010.
  • According to recent studies, over 60% of Chittenden County residents would walk or bike to work more frequently if safety and accessibility improvements are made.
  • The non-taxable bicycle commuter benefit was suspended until 2026 by the Tax Cuts and Jobs Act of 2017.
  • The legislation would allow employees to choose between receiving a pre-tax commuter benefit for bicycle, public transit, and parking expenses.

Statistics:

  • Over 6% of Vermont residents walk to work, ranking the state third-highest in the nation for its walk-to-work percentage.
  • In Chittenden County, Vermont, the number of residents biking to work has doubled since 2010.
  • Over 60% of Chittenden County residents would walk or bike to work more frequently if safety and accessibility improvements are made.
  • The Bicycle Commuter Act of 2025 aims to create a more balanced, multimodal transportation system.

Sources:

  • Source: United States Senator Peter Welch (D-Vermont)
  • Source: United States Senator Alex Padilla (D-Calif.)
  • Source: United States Representative Mike Thompson (D-CA-04)
  • Association for Commuter Transportation (ACT)
  • League of American Bicyclists
  • North American Bikeshare & Scootershare Association
  • PeopleForBikes
  • Rails to Trails Conservancy
  • Safe Routes Partnership
  • Sierra Club

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