Amidst the dire state of the US banking system, and the US$700 billion bailout for Wall Street, lies a nugget of benefit for US cyclists. Thanks to Congressman Blumenauer of Oregon a bike commuter benefit provision was included in the 450 page bailout bill (HR1424) signed by President Bush.
The new provision states that employers may now include bike commuters with those employees who receive a tax free reimbursement for expenses. This was previously limited to those travelling to work via car or mass transit. Employers may reimburse employees, tax free, for ‘reasonable’ expenses related to their bike commute, including equipment purchases, bike purchases, repairs, and storage if the bicycle is used as a ‘substantial part’ of the commuter’s trip to work for a given month. The benefit, up to US$20 (€15) per month, begins in 2009.
“We are delighted that the bicycle commuter benefits act has passed after a lengthy and persistent campaign spearheaded by Congressman Blumenauer (D-OR),” said League of American Bicyclists President Andy Clarke. “Bicycle commuters will now be extended similar benefits to people who take transit and drive to work. It’s an equitable and sensible incentive to encourage greater energy independence, improve air quality and health, and even help tackle climate change. Thanks to everyone who has helped reach this milestone, especially Walter Finch and Mele Williams, our government relations staff over the years who have worked tirelessly with Congressman Blumenauer, Senator Ron Wyden (D-OR) and many others in Congress.”
To be eligible for the qualified bicycle commuting reimbursement an employer has to actually offer this fringe benefit. Second, a claimant would have to use a bike ‘regularly’ to travel between home and work. In other words, riding a bike for commuting is a necessary provision to qualify.
