$700 Billion Bailout Package Nets an Extra $240 per Year for Bike Commuters

If you use your bicycle to commute to and from work, starting after 12/31/2008, you may become eligible for a $20 / month expense reimbursement from your employer (providing your employer is willing to participate).

The new law, which reads as follows, was passed as part of the recent Wall Street bailout package ( H.R. 1424) and was entered to appease (read: swing the vote of…) Congressman Blumenauer (D) of Oregon.

SEC. 211. TRANSPORTATION FRINGE BENEFIT TO BICYCLE COMMUTERS.

(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.

Personally, I have a strong appreciation for bike commuting as I am very much a bicycling enthusiast and with the recent purchase of a new Trek Soho S, I’m quickly becoming an avid cyclist as well.  Not to mention the fact that with traffic congestion and air pollution, legislation to encourage alternatives for commuters outside of their cars can only help our country, not just from an environmental standpoint, but also in the effort to reduce our dependence on foreign oil for everyday travel. 

Coincidentally, Tampa’s Bay Area Commuter Services group held a kickoff event today for the 12th annual “ Commuters Choices Week“, which I attended for a short while this afternoon. In case you are wondering…yes, I did go there by bike.  Among other local organizations, my friends from the Carrollwood Bicycle Emporium were there performing free bike tune ups. 

While I do support the above mentioned addition to the recent House bill and I do believe strongly that it is a step in the right direction, I don’t agree with the way it was added into a bill that has nothing to do with bicycle commuting, non-taxable reimbursements, energy or environmental issues. This leads me to wonder how many other items were added into this bill in order to swing the votes of other Congressmen who may not possess the same zeal for issues like pollution and physical fitness as Oregon’s Blumenauer does.  I suppose I will have to read the bill in its entirety to find out.

Sec. 317 looks like a good place to start.