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Internal Revenue Code of 1986

The main body of tax laws for the United States, which the IRS uses to collect taxes.

Fringe benefits

Benefits an employee receives from an employer that are not direct wages, such as health insurance, retirement plans, or, in this case, commuting assistance.

Exclusion

An amount of income that is specifically left out when calculating an individual's taxable income, meaning it is not subject to federal income tax.

Qualified bicycle commuting benefit

Specific expenses related to bicycle or scooter commuting that an employer can reimburse or provide to an employee, which can be tax-free under certain conditions.

Electric bicycle

A bicycle with working pedals, a seat, and an electric motor (under 750 watts) that assists the rider, usually stopping assistance above a certain speed (like 20 or 28 mph).

Bikeshare

A service that allows people to rent bicycles or scooters for short periods, often for point-to-point travel within a specific area.

Constructive receipt

A tax principle where income is considered received (and therefore taxable) even if the taxpayer hasn't physically taken possession of it, because they had control over when to receive it or could have chosen to receive it in another form.