Bicycle Commuter Act of 2023

II 118TH CONGRESS 1ST SESSION S. 1724 To amend the Internal Revenue Code of 1986 to modify employer-provided fringe benefits for bicycle commuting. IN THE SENATE OF THE UNITED STATES MAY 18, 2023 Mr. BROWN introduced the following bill; which was read twice and referred to the Committee on Finance A BILL To amend the Internal Revenue Code of 1986 to modify employer-provided fringe benefits for bicycle commuting. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Bicycle Commuter Act 4 of 2023’’. 5 SEC. 2. REINSTATEMENT AND EXPANSION OF EMPLOYER- 6 PROVIDED FRINGE BENEFITS FOR BICYCLE 7 COMMUTING. 8 (a) REPEAL OF SUSPENSION OF EXCLUSION FOR 9 QUALIFIED BICYCLE COMMUTING BENEFITS.—Section 10 VerDate Sep 11 2014 04:11 Jun 02, 2023 Jkt 039200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S1724.IS S1724 kjohnson on DSK79L0C42PROD with BILLS 2 •S 1724 IS 132(f) of the Internal Revenue Code of 1986 is amended 1 by striking paragraph (8). 2 (b) EXPANSION OF BICYCLE COMMUTING BENE- 3 FITS.—Section 132(f)(5)(F) of such Code is amended to 4 read as follows: 5 ‘‘(F) DEFINITIONS RELATED TO BICYCLE 6 COMMUTING BENEFITS.— 7 ‘‘(i) QUALIFIED BICYCLE COMMUTING 8 BENEFIT.—The term ‘qualified bicycle 9 commuting benefit’ means, with respect to 10 any calendar year— 11 ‘‘(I) any employer reimbursement 12 during the 15-month period beginning 13 with the first day of such calendar 14 year for reasonable expenses incurred 15 by the employee during such calendar 16 year for the purchase (including asso- 17 ciated finance charges), lease, rental 18 (including a bikeshare), improvement, 19 repair, or storage of qualified com- 20 muting property, or 21 ‘‘(II) the direct or indirect provi- 22 sion by the employer to the employee 23 during such calendar year of the use 24 (including a bikeshare), improvement, 25 VerDate Sep 11 2014 04:11 Jun 02, 2023 Jkt 039200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S1724.IS S1724 kjohnson on DSK79L0C42PROD with BILLS 3 •S 1724 IS repair, or storage of qualified com- 1 muting property, 2 if the employee regularly uses such quali- 3 fied commuting property for travel between 4 the employee’s residence, place of employ- 5 ment, a qualified parking facility, or a 6 mass transit facility that connects the em- 7 ployee to their residence or place of em- 8 ployment. 9 ‘‘(ii) QUALIFIED COMMUTING PROP- 10 ERTY.—The term ‘qualified commuting 11 property’ means— 12 ‘‘(I) any bicycle (other than a bi- 13 cycle equipped with any motor), 14 ‘‘(II) any electric bicycle, 15 ‘‘(III) any 2- or 3-wheel scooter 16 (other than a scooter equipped with 17 any motor), and 18 ‘‘(IV) any 2- or 3-wheel scooter 19 propelled by an electric motor if such 20 motor does not provide assistance if 21 the speed of such scooter exceeds 20 22 miler per hour (or if the speed of such 23 scooter is not capable of exceeding 20 24 miles per hour) and the weight of 25 VerDate Sep 11 2014 04:11 Jun 02, 2023 Jkt 039200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S1724.IS S1724 kjohnson on DSK79L0C42PROD with BILLS 4 •S 1724 IS such scooter does not exceed 100 1 pounds. 2 ‘‘(iii) ELECTRIC BICYCLE.—The term 3 ‘electric bicycle’ means a bicycle which is 4 equipped with fully operable pedals, a sad- 5 dle or seat for the rider, and an electric 6 motor which is less than 750 watts, de- 7 signed to provide assistance in propelling 8 the bicycle, and— 9 ‘‘(I) does not provide such assist- 10 ance if the bicycle is moving in excess 11 of 20 miler per hour, or 12 ‘‘(II) if such motor only provides 13 such assistance when the rider is ped- 14 aling, does not provide such assistance 15 if the bicycle is moving in excess of 28 16 miles per hour. 17 ‘‘(iv) BIKESHARE.—The term 18 ‘bikeshare’ means a rental operation at 19 which qualified commuting property is 20 made available to customers to pick up and 21 drop off for point-to-point use within a de- 22 fined geographic area.’’. 23 (c) LIMITATION ON EXCLUSION.—Section 24 132(f)(2)(C) of such Code is amended to read as follows: 25 VerDate Sep 11 2014 04:11 Jun 02, 2023 Jkt 039200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\S1724.IS S1724 kjohnson on DSK79L0C42PROD with BILLS 5 •S 1724 IS ‘‘(C) 30 percent of the dollar amount in ef- 1 fect under subparagraph (B) per month in the 2 case of any qualified bicycle commuting ben- 3 efit.’’. 4 (d) NO CONSTRUCTIVE RECEIPT.—Section 132(f)(4) 5 of such Code is amended by striking ‘‘(other than a quali- 6 fied bicycle commuting reimbursement)’’. 7 (e) CONFORMING AMENDMENTS.— 8 (1) Section 132(f)(1)(D) of such Code is 9 amended by striking ‘‘reimbursement’’ and inserting 10 ‘‘benefit’’. 11 (2) Section 274(l) of such Code is amended by 12 striking paragraph (2). 13 (f) EFFECTIVE DATE.—The amendments made by 14 this section shall apply to taxable years beginning after 15 December 31, 2022. 16 Æ VerDate Sep 11 2014 04:11 Jun 02, 2023 Jkt 039200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6301 E:\BILLS\S1724.IS S1724 kjohnson on DSK79L0C42PROD with BILLS