Hybrid cars, sure. But where's that tax incentive for bicycle commuters?

I'm trying to hammer through our 2005 federal tax return before the mid-April deadline, and I come across a tax break reminder for hybrid car owners. I started thinking, “Why not bike commuters?”

The owners of fuel-efficient hybrids are being told to remember to report their $2,000 tax deduction if they bought their hybrid before the end of 2005. Anyone who buys one this year might be eligible for up to a $3,400 tax credit, depending on the make and model, when they file in 2007. (Hybrid car owners might want to check out more about this at Hybrid Alert.)

I'm all for encouraging people to buy gas-electric hybrids, especially considering that businesses can ante up deductions for their fleets of Hummers and SUVs.

But how about bicyclists? Don't they reduce greenhouse gas emissions and dependence on fossil fuels to a big fat ZERO?

I searched around on the Internet, and wouldn't you know, someone on Capitol Hill is already working on a tax incentive.

It's called the Bicycle Commuter Act. It's not a tax deduction to bike commuters themselves, but to their employers as part of the tax code's transportation fringe benefit (that fringe benefit makes vanpooling possible, for instance).

To qualify for the benefit, employers could offer a monthly cash reimbursement of up to $100 to an employee who commutes to work by bicycle. Employer gets tax break, employee gets cash. Sounds good to me. (The Bike League of America has more info on its blog entry entitled, “Bicycle Commuter Act…”)

Flatted out in committee

The bill is named HR 807 and it was introduced by two congressmen, Democrat Earl Blumenauer of Portland and Republican Mark Foley of Florida. If you check out Thomas (the Library of Congress site that tracks bills), you'll find the HR 807 was introduced Feb. 15, 2005 and 10 days later was referred to the House subcommittee on Health. It has languished there ever since.

(UPDATE May 1, 2006: U.S. Sens. Olympia Snowe and Susan Collins introduced Bicycle Commuters Benefit Act of 2006 that extends fringe benefit to bicyclists.)

Meanwhile, State legislator Doug Smith, a Republican from Spartanburg, South Carolina, made headlines last May when he introduced a bill that would allow bicycle commuters to deduct 10 cents a mile from their income taxes. Smith told the AP:

“What we want to do is encourage people to use bicycles wherever they can, especially going to and from work. That's good for their health and the environment, and that's good for everybody.”

I couldn't find any more news about that state bill, however, so don't everyone move to South Carolina to take advantage of it.