Congressman Earl Blumenauer (OR-D) has worked tirelessly with
bicycle advocates for seven years to win a tax credit for
bicycle commuters…but ironically after being rejected time after
time, the credit became law in a matte of days. The initiative
was deep in the jowls of the $700 billion financial rescue plan
adopted by Congress earlier this month. Ironically, the
credits’ #1 congressional champion voted against the rescue
package even though it included the program he had long fought
to see become law. Reportedly, the Congressman had received
thousands of calls from constituents urging him to vote no to
the package and he was frustrated with the lack of provisions to
help individual homeowners among other things included in the
package. The good news for physical activity advocates is that
the law will take effect in January. Included below is an
explanation of the law provided by Congressman Blumenauer.
How The Law Works:
·
For employees who regularly commute to work by
bicycle, employers may offset the costs of bicycle purchase,
improvement, repair, and storage at the rate of $20 per month.
·
Based on how the employer chooses to offer the
benefits, the employee may bring receipts to be reimbursed, may
sign up for regular monthly payments, or devise some sort of
voucher system with their employer.
·
Bike commuters are not allowed to receive transit
or parking benefits in addition to the bike benefit.
·
The bike commuter benefit can be provided by
employers beginning January 1, 2009.
How The Statute Reads:
Section 132 of the tax code excludes from gross income certain
fringe benefits offered by employers to employees, including
transportation benefits. Under the new law,“qualified bicycle
commuting reimbursements” are included within the definition of
transportation benefits. The League of American Bicyclists has
the law in its entirety on their website-click
here to view it.
Commuting By The Numbers
·
With over 50% of the working population commuting
5 miles or less to work, bicycles offer the
strongest potential for reducing single-occupancy
vehicle trips.
·
According to the Bureau of Transportation
Statistics, bicycles are second only to cars as a preferred form
of transportation. Excluding this highly preferred mode of
transportation is counterintuitive.
·
Studies have shown that when facilities such as
bike parking or showers
