Bicycle Commuter Act Becomes Law
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
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