(a) Repeal of suspension of exclusion for qualified bicycle commuting benefits

Section 132(f) of the Internal Revenue Code of 1986 is amended by striking paragraph (8).

(b) Expansion of bicycle commuting benefits

Section 132(f)(5)(F) of such Code is amended to read as follows:

(F) Definitions related to bicycle commuting benefits

(i) Qualified bicycle commuting benefit

The term qualified bicycle commuting benefit means, with respect to any calendar year—

(I)

any employer reimbursement during the 15-month period beginning with the first day of such calendar year for reasonable expenses incurred by the employee during such calendar year for the purchase (including associated finance charges), lease, rental (including a bikeshare), improvement, repair, or storage of qualified commuting property, or

(II)

the direct or indirect provision by the employer to the employee during such calendar year of the use (including a bikeshare), improvement, repair, or storage of qualified commuting property,

if the employee regularly uses such qualified commuting property for travel between the employee’s residence, place of employment, a qualified parking facility, or a mass transit facility that connects the employee to their residence or place of employment.

(ii) Qualified commuting property

The term qualified commuting property means—

(I)

any bicycle (other than a bicycle equipped with any motor),

(II)

any electric bicycle,

(III)

any 2- or 3-wheel scooter (other than a scooter equipped with any motor), and

(IV)

any 2- or 3-wheel scooter propelled by an electric motor if such motor does not provide assistance if the speed of such scooter exceeds 20 miler per hour (or if the speed of such scooter is not capable of exceeding 20 miles per hour) and the weight of such scooter does not exceed 100 pounds.

(iii) Electric bicycle

The term electric bicycle means a bicycle which is—

(I)

equipped with—

(aa)

fully operable pedals,

(bb)

a saddle or seat for the rider, and

(cc)

an electric motor which is less than 750 watts, designed to provide assistance in propelling the bicycle, and—

(AA)

does not provide such assistance if the bicycle is moving in excess of 20 miler per hour, or

(BB)

if such motor only provides such assistance when the rider is pedaling, does not provide such assistance if the bicycle is moving in excess of 28 miles per hour, and

(II)

certified by the manufacturer, importer, or distributor of such bicycle to comply with the requirements under part 1512 of title 16, Code of Federal Regulations (or any successor regulations issued by the Consumer Product Safety Commission).

(iv) Bikeshare

The term bikeshare means a rental operation at which qualified commuting property is made available to customers to pick up and drop off for point-to-point use within a defined geographic area.

(c) Limitation on exclusion

Section 132(f)(2)(C) of such Code is amended to read as follows:

(C)

30 percent of the dollar amount in effect under subparagraph (B) per month in the case of any qualified bicycle commuting benefit.

(d) No constructive receipt

Section 132(f)(4) of such Code is amended by striking (other than a qualified bicycle commuting reimbursement).

(e) Conforming amendments

(f) Effective date

The amendments made by this section shall apply to taxable years beginning after December 31, 2024.