PeopleForBikes Statement On Elimination of Bike Tax Benefits in Senate Tax Plan


PeopleForBikes, the largest U.S. bicycle advocacy group, criticized the tax plan released earlier this week by the Senate Majority leadership for its proposal to eliminate the $20-per-month tax-free reimbursement benefit for expenses related to bicycle commuting. PeopleForBikes supports the House version of the bill for its continuation of the bike commuting benefit.

“The cost of the federal bike commuter benefit is paid primarily by employers, and its tax-free provision costs the federal government only $5 million per year,” said PeopleForBikes President, Tim Blumenthal. “The benefits to both individuals and communities far exceed the cost. This modest reimbursement program has helped bike commuting grow by more than 50 percent nationwide during the last decade–easing road congestion, promoting good health, and supporting a crucial, economical mode of transportation for hard-working, low-income Americans.”

Pat Cunnane, CEO of Pennsylvania-based Advanced Sports Enterprises, Inc., said, “The $20-per-month tax-free benefit encourages more people to ride their bikes to work and offers employers like us a simple, health-focused incentive to give our employees.”

Blumenthal said, “As Congress continues to debate tax reform, we hope this provision is dropped from the final package to reflect the current House version.”