MA Bike, Bus Users Get New Tax Break Under Law Signed By Healey

MASSACHUSETTS — The new tax bill signed Wednesday by Gov. Maura Healey will usher in billions in new tax breaks, including a new one for state residents who use bicycles and public transit to commute.

The new bill amends a section of state law that grants a $750 tax deduction to drivers who use E-ZPass, people who buy monthly or weekly MBTA passes and ferry commuters to include all transit authority fares — including regional bus networks — bikeshare memberships and costs related to commuting by bike or electric bike.

The maximum $750 deduction applies to any costs above $150 for either single or married taxpayers, and also includes expenses related to repairing or storing bicycles.

The group MassBike has been pushing to add the deduction for bike commuters for years, and credited state Sen. John Keenan, D-Quincy, state Rep. Tommy Vitolo, D-Brookline and state Rep. Steven Owens, D-Watertown, with getting the break included in the bill.

Massachusetts has lagged other states with benefits for bicyclists. States including Rhode Island, Vermont and Maine all offer rebates to residents who buy e-bikes. State leaders might look at e-bike rebates up to $500 in 2024.

The tax bill, expected to add up to about $1 billion in tax cuts in the coming years, emerged on Beacon Hill last week after about two years of closed-door negotiations. The state House and Senate approved the deal in back-to-back nearly unanimous votes, followed by Healey's signing ceremony on Wednesday.

Related: MA $1 Billion Tax Relief Package: What's Inside Long-Brewing Bill