That much ballyhooed “landmark energy bill” that was passed by Congress and signed into law by President Bush last week didn't include a component that was in earlier versions — the bicycle commuter tax break.
Sorry bike commuters. A lump of coal in your stocking again this year.
The fringe benefit that would have enabled employers to give you a $20/month stipend for riding your bicycles to work was deflated by Senate Republicans. They threatened to filibuster at the last minute if the renewable energy and energy efficiency tax package made it into HR 6, the final energy bill.
That energy tax package included provisions that would have benefited bicycle commuters and wind and solar power producers. It also would have closed the so-called Hummer tax break loophole and reduced tax breaks for oil and gas companies. Small wonder it didn't make it.
Pet measure
The bicycle commuter tax benefit has been a pet measure for Portland's Congressman Earl Blumenauer, a member of the House Ways and Means committee. He first filed it in 2005, then refiled it this year when the Democrats took the majority in Congress.
According to his website, the bike commuter benefit measure made it into the energy tax package two weeks ago that was part of the energy bill:
“The bill amends section 132(f) of the IRS code to include “bicycles” in the definition of transportation covered by fringe benefits. This would provide a benefit of $20/month for those employees who bike to work, which is a clean, healthy and efficient mode of transportation. Transportation fringe benefits are currently provided to employees who commute by car and transit; this would provide parity to those who commute by bike.”
Blumenauer also helped attach provisions that eliminated a business tax benefit for buying Hummers and large SUVs and expanded an energy conservation bond program that included bike paths.
Senate roadblock
So the landmark energy bill was passed by the House with the bicycle commuter, bike path and Hummer loophole provisions intact. When the tax provisions in the energy bill came to a Senate vote, Republicans threatened to filibuster the energy bill so nothing would pass. Because the measure reduced tax breaks to oil and gas companies; Republicans called it an “enormous tax hike.”
The Washington Post tells how it all came down.
The American Petroleum Institute said: “We applaud the Senate for recognizing the adverse effect that increased taxes would have had on future energy supplies.”
On Wednesday, President Bush signed into law the bill that calls for 35 mpg fuel efficiency in cars by 2020.
Hummer loophole
Judy Dugan at Huffington Post has written about the sleight-of-hand with the use of ethanol and flex fuels that makes the “landmark energy bill” only praiseworthy when compared to previous energy bills this decade. She complains about the Hummer loophole:
“As Markey notes, the bill failed to kill the special federal tax deduction for Hummers. And Yukons. And Suburbans. Any SUV big enough to get single-digit city mileage is deemed a work vehicle, and anyone smart enough to claim a business use (think real estate sales or a hair salon) gets a tax deduction for buying one, up to $100,000 (yes, you read that right).”
The League of American Bicyclists reports that, on a positive note, the Complete Streets Encouragement Provision (section 1132) and Equal Treatment for Rescissions provision (section 1133) made it into the final bill. The final energy bill can be found here (.pdf format).
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