OBBB Impacts a Grab Bag of Employment Benefit Provisions

Prior to 2018, employers could reimburse employees up to $20 per month ($240 per year) on a tax-free basis for bicycle-related commuting expenses. The 2025 OBBB permanently repealed this benefit option. Similarly, employers could reimburse employees for qualified moving expenses on a tax-free basis. That option was also permanently repealed under the OBBB, with a limited exception for active-duty military. Amounts paid to employees for bicycle commuting expenses or moving expenses will thus now be taxable income to employees. The OBBB did, however, increase the limits that apply for employer-sponsored dependent care assistance programs (the previously-existing limit was increased from $5,000 to $7,500 per employee, per plan year). For more information on , visit Tax Facts Online. Read More: Link to Q8747. Note: Q8747, Q8746, Q8906, Q3626, Q8903 are updated.