Commuters have been riding bikes to work in greater numbers as gas prices have risen in the U.S. Now, with the passage of the Bicycle Commuter Act, beginning January 1, 2009, bicycle commuters will be eligible for a $20-a-month, tax-free reimbursement from their employers for bicycle-related expenses.
The measure is another one of the add-ons to the economic bailout package signed into law last week. (Read Federal Tax Deduction Established for Energy Efficient Buildings.)
The measure is expected to add a $1 million drop in the debt bucket, according to the League of American Bicyclists, one of the advocacy groups that has been pushing for the legislation for about seven years.
The League of American Bicyclists said it is taking the lead to obtain guidance from IRS that employers can use to set up their programs.
The intent of the provision is to help defray bike communting costs, such as the purchase of a bicycle, bike lock, helmet, bike parking facilities, shower facilities and general maintenance.
Some employers already offer perks to bicyclists. The City of Palo Alto offers bicycle commuters $20 per month in taxable cash benefits if they commute by bicycle to 60% or more of their scheduled shifts.
Google, at its Mountain View, California, headquarters, offers employees bike tune-ups once a month. Discovery Communications, owned in part by Discovery Holding, reimburses employees $350 for a bike, and it designed its three offices in the Washington, D.C., area as "bicyclist friendly," with secure bike racks, day lockers and showers. Yahoo! has bike lockers and showers at its Sunnyvale and Santa Clara, Calif., buildings and a "bike buddies" matching program so employees can share bicycle commuting tips and trips.
Oregon representatives Earl Blumenauer (D-OR) and Senator Ron Wyden (D-OR) were largely responsible for passage of the act.
Learn more about it through the League of American Bicyclists.
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