Image: richardmasoner
Bicycle commuters rejoice! Those 448 pages tacked on to the original bailout plan didn’t leave us completely in the dark. By now, you’ve probably heard about tax cuts for everthing from wooden arrows to race tracks and plug-in hybrids, but nothing for cyclists. However, thanks to Treehugger, I have learned that there will indeed be very minor tax cuts for us bicycle commuters.
These cuts are not as straightforward as writing down a number of miles on your taxes and getting money back, but they will allow your employer to offer commuting benefits to you, which could make up to $20 a month of commuting-related expenses tax free. It’s not going to cover the cost of a decent bike, but at least it’s something, and hopefully some employer programs wil be able to reach out to more potential commuters.
Here’s the full text:
“(a) In General- Paragraph (1) of section 132(f) is amended by adding at the end the following:
`(D) Any qualified bicycle commuting reimbursement.’.
(b) Limitation on Exclusion- Paragraph (2) of section 132(f) is amended by striking `and’ at the end of subparagraph (A), by striking the period at the end of subparagraph (B) and inserting `, and’, and by adding at the end the following new subparagraph:
`(C) the applicable annual limitation in the case of any qualified bicycle commuting reimbursement.’.
(c) Definitions- Paragraph (5) of section 132(f) is amended by adding at the end the following:
`(F) DEFINITIONS RELATED TO BICYCLE COMMUTING REIMBURSEMENT-
`(i) QUALIFIED BICYCLE COMMUTING REIMBURSEMENT- The term `qualified bicycle commuting reimbursement’ means, with respect to any calendar year, any employer reimbursement during the 15-month period beginning with the first day of such calendar year for reasonable expenses incurred by the employee during such calendar year for the purchase of a bicycle and bicycle improvements, repair, and storage, if such bicycle is regularly used for travel between the employee’s residence and place of employment.
`(ii) APPLICABLE ANNUAL LIMITATION- The term `applicable annual limitation’ means, with respect to any employee for any calendar year, the product of $20 multiplied by the number of qualified bicycle commuting months during such year.
`(iii) QUALIFIED BICYCLE COMMUTING MONTH- The term `qualified bicycle commuting month’ means, with respect to any employee, any month during which such employee–
`(I) regularly uses the bicycle for a substantial portion of the travel between the employee’s residence and place of employment, and`(II) does not receive any benefit described in subparagraph (A), (B), or (C) of paragraph (1).’.
(d) Constructive Receipt of Benefit- Paragraph (4) of section 132(f) is amended by inserting `(other than a qualified bicycle commuting reimbursement)’ after `qualified transportation fringe’.
(e) Effective Date- The amendments made by this section shall apply to taxable years beginning after December 31, 2008.â€
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Thanks for the attribution, though I have to point out the irony of using that bike+bus photo: the bike commuter benefit is _not_ available to those (like me) who also get the Section 132 transit benefit.
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