It's kind of hard to believe, but that fringe benefit for bicycle commuters went into effect on Thursday.
You can now actually be reimbursed for riding your bicycle to work.
As of Jan. 1, employers can offer up to $20 per month to employees who regularly commute by bicycle to offset the cost of buying, repairing, improving or storing their bicycles.
Bicyclists can receive the $20 in cash reimbursements, vouchers redeemable at bicycle shops or parking locations, or as a pre-tax deduction program. It depends on what your employer wants to do.
More info
You may be notified about the availability of this benefit when you show up to work, or you might have to knock on Human Resources' door (unless it's always open) and inform them about the provision.
One place for you or your employer to go to find out more about this program is the Bicycle Commuter Tax Provision FAQ at the League of American Bicyclists.
They're trying to stay on top of developments in the tax code that pertain to the bicycle commuter tax benefit and tell how companies can implement the benefit. There's other information about how to apply, who's covered (those who use a transit pass benefit cannot apply for this), and why it pays employers to participate in the program.
Another place your company can check is the Accor website, which provides benefit-implementation services to companies. Accor has created a voucher product — Commuter Check for Bicycling — that they say makes it easy for companies to administer the program.
Blumenauer
The proposal was first penned by Portland's Congressman Earl Blumenauer about seven years ago and languished in various congressional committees on Capitol Hill all that time.
Then suddenly it was tacked onto last fall's $700 billion bank bailout as a slab of “pork” to get some congressmen off the fence to vote in favor of the bailout.
Ironically, Blumenauer didn't agree with the bank bailout (a laudable position considering how poorly it's being administered) and ended up voting against it.
He explains the bicycle tax provision at his website, which also contains language from the bill.
See also: “Pork in bailout bill includes bicycle commuter fringe benefits”
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