Bicycle Commuter Act Becomes Law

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

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