Advocacy & Safety - NJ Assembly bill introduced to give tax breaks on bikes

Sorry, I should have posted this in the Commuting forum.

This was in today's Press of Atlantic City:

Assembly bill introduced to give tax breaks on bikes

Bikes are better, both for your health and for the environment.

If the New Jersey Assembly has its way, however, yet one more benefit will come courtesy the two-wheeler: a tax deduction.

Lawmakers David Wolf, a Republican, and Reed Gusciora, a Democrat, leaned across party lines to co-sponsor this bill, which would allow a 10 cents per mile income-tax deduction for commuting to and from work by bicycle.

According to Bill A3441, "this deduction will provide an incentive to encourage bicycle commuting and reduce the large number of short, single-occupancy vehicle trips that many New Jerseyans engage in to get to and from work. This deduction provides a potential means to increase the numbers of bicycle commuters in the state, which would help reduce the numbers of trips made by automobiles."

Cold weather was on its way late last year when the bill was introduced in October, and that's probably why it hasn't been big in the news. The last couple of snowy weeks, likewise, have taken people's minds off bicycling icy highways.

One city in New Jersey, however, takes bicycling seriously all year round: Hoboken.

"HoBiken" is the Community Bike Project of Hoboken, and it provides free bicycles for residents of the city as an alternative form of transportation. See the project's Web site at www.hobiken.com/

It isn't the same as pennies in your pocket come tax time, but it is a free ride to work. It's also a way to keep extra pollutants out of the air.

The bicycles the city provides are built from recovered and donated bicycles, many from within the city.

In either case, pedal power in New Jersey offers a triple treat: health, environment and saving dollars. Check the Legislature's Web site for your lawmaker's e-mail address: www.njleg.state.nj.us/

Then let your representative know what you think about biking tax deductions. And if you're going to Hoboken, check that city's Web site first for information on renting a bicycle for your stay there. It's only $5 a day for non-residents.

Interesting. Here is an easy link to the bill.

http://www.njleg.state.nj.us/2004/Bills/A3500/3441_I1.HTM

At first I thought this would be an opportunity for abuse, but it does require record keeping. Probably not worth cheating for $300 by making up a record of 3000miles logged commuting. So its no different than many other tax breaks that could be cheated in a similar manner.

A great idea.

Al

Remember, it's only a deduction, not a credit. So even if you get a $400 deduction, you only save whatever the state income tax rate is. And that's a lot of record keeping.

In addition, I've hear of this kind of bill being intriduced elsewhere, but I've never heard that one has passed.

Remember, it's only a deduction, not a credit. So even if you get a $400 deduction, you only save whatever the state income tax rate is. And that's a lot of record keeping.

In addition, I've hear of this kind of bill being intriduced elsewhere, but I've never heard that one has passed.
I keep those records anyway ;)

I think that it is still important for them to be introduced, even if they don't pass. Its a step in the right direction and gets those folks thinking. Plus it takes several tries with different wordings to get something workable.

Al

I wrote my reps telling them I support it. I already keep those records as well.

So, what does that come to? 5,500 miles would get me about $120 a year off my taxes. Whatever.

Now, if I could deduct some of the expenses associated with constant bike commuting: tubes, tires, chains, cogs, rings, rims, cleats. NOW we're talking!

Yeah, that's gonna happen...

I read in England they offer tax credits to companies that encourage bike commuting by providing safe bike storage and showers etc. There also is a "Congestion Charge" for bringing a car into the center of London at certain peak times to encourage bike commuting. The studies say it is working. Bike commuting is up.

So, what does that come to? 5,500 miles would get me about $120 a year off my taxes. Whatever.

Now, if I could deduct some of the expenses associated with constant bike commuting: tubes, tires, chains, cogs, rings, rims, cleats. NOW we're talking!

Yeah, that's gonna happen...

Maybe my math is wrong. But at 10 cents a mile...

5,500 miles * .10 = $550.00

That's a good chunck of money for me...

but hey if you got 550.00 to throw around, send it my way :)

Ray

Maybe my math is wrong. But at 10 cents a mile...

5,500 miles * .10 = $550.00

That's a good chunck of money for me...

but hey if you got 550.00 to throw around, send it my way :)

Ray

As someone pointed out above a deduction is different from a credit.

You're actually subtracting that $550 from your gross taxable income, which lowers your taxes somewhat, but not by $550. You're not subtracting the $550 directly from the taxes you've paid.

Or at least that's the way I understand it. I'm sure someone will correct me if I'm wrong.

-Trevor

Dumb idea. Besides adding another unnecessary bit of complexity to the tax code, bike commuters are already saving way more than that in transportation costs anyway. Instead they should invest in making biking (and walking) easier and safer by improving the safety of roads, or at least cleaning the shoulders and gutters more often.

It may not sound like much but hey it is something, as token as it is right now they are giving you nothing. If I lived in NJ I would contact my Rep as well and say that I support it as well. $100 here and there adds up and you already do the commuting right? So you are getting money for simply doing the paperwork. Also it opens the door for what the poster pointed out about writing off the other expenses like you can do with a car. Hmm maybe I can lease that high end bike and write the whole thing off. LOL

One city in New Jersey, however, takes bicycling seriously all year round: Hoboken.

"HoBiken" is the Community Bike Project of Hoboken, and it provides free bicycles for residents of the city as an alternative form of transportation. See the project's Web site at www.hobiken.com/
.

Thanks for the Article.

Hoboken residents are basically transferred New Yorkers who got tired of paying high rents and wanted something a little better. The reason there's so much biking in Hoboken is because the town is so small and there's very little parking. Furthermore, you need a resident parking sticker on your window or you'll get towed!

If you ever go to the train station, there must be close to a hundred junk bikes parked there 24/7. I used to park there all the time before the Lightrail came into service. Unfortunately, bicycle crime at that station is horrendous and I wouldn't leave anything other than a rusted department store bike on that rack.

I would love to live in Hoboken and that would be the ONLY city I would choose to live in other than where I'm at now. Hoboken has some of the best looking women in Jersey. FOR REAL! Unfortunately, you have to make good money to live there because the rents are out of this world and the real apartments are going for 350 to 1 million dollars for a condo.

What I like about Hoboken is the fact that it has one of the largest passenger train stations in the north east. It's a young community where you can live, shop and work within walking distance. If you need to travel further, the train station will get you to the airport or to New York city in minutes.

Last summer, I explored the many rail lines out of Hoboken with my bicycle and it was incredible the locations that I could reach.

I predict that 99% of New Jersey workers will claim to be bicycle commuters. How would the state verify this?

It may not sound like much but hey it is something, as token as it is right now they are giving you nothing. If I lived in NJ I would contact my Rep as well and say that I support it as well. $100 here and there adds up and you already do the commuting right? So you are getting money for simply doing the paperwork. Also it opens the door for what the poster pointed out about writing off the other expenses like you can do with a car. Hmm maybe I can lease that high end bike and write the whole thing off. LOL

Agreed. If I'm riding anyway, then someone wants to lop a few bucks off my taxes for doing so, I guess I shouldn't complain.



Maybe my math is wrong. But at 10 cents a mile...

5,500 miles * .10 = $550.00

That's a good chunck of money for me...

but hey if you got 550.00 to throw around, send it my way


You need to apply the tax rate to that $550.00 in order to arrive at your tax savings.

Sorry, I should have posted this in the Commuting forum.

This was in today's Press of Atlantic City:

Assembly bill introduced to give tax breaks on bikes
...
This is a great idea! Not perfect, but still a great idea. I'd gladly keep track of my daily miles for a $250-a-year deduction. Anyone ever written to a congressman to try to encourage them to pick up on another state's idea? I live in Maryland, and would like to know if there's an appropriate way to do this...

$100 here and there adds up and you already do the commuting right? So you are getting money for simply doing the paperwork.

4.4 miles * 365 days * 0.5 of those days * 0.1 dollars/mile * 0.06 rough tax rate(?) ... that's about $5.

Now that I think of it, this probably only applies to people who itemize deductions, in which case it means $0 to most of us.

The point is not what this bill could do for YOU, but that it was introduced at all. Acknowledging that commuting by bike is a serious mode of transportation is overdue. Drivers of some hybrid vehicles get tax breaks, why not us? Some hybrid owners buy hybrid because of the incentives, not because they think they are saving the world. But, hey, they are spewing fewer pollutants than if they had kept their SUV or bought the non-hybrid vehicle they were thinking of getting.

This bill is a good thing; and might eventually lead to other incentives to commute by bike, such as deductions for parts, etc. If it's too much trouble for a particular person, then they won't claim it, but just remember that it all adds up.

Ignore it if you want to, but don't trash the concept.

This is a great idea! Not perfect, but still a great idea. I'd gladly keep track of my daily miles for a $250-a-year deduction. Anyone ever written to a congressman to try to encourage them to pick up on another state's idea? I live in Maryland, and would like to know if there's an appropriate way to do this...

I live in Maryland, too. If you get any bright ideas, send me a PM. I'll do the same. Maybe we could start at the county level (I'm in PG, too). Arlington and Alexandria have local incentives. I'll check into them.

The point is not what this bill could do for YOU, but that it was introduced at all. Acknowledging that commuting by bike is a serious mode of transportation is overdue.

Ignore it if you want to, but don't trash the concept.

Yes, I trash it completely. It is token. It is less than token - it's merely a politician's PR stunt.
If they wanted to make cycling work, they would invest real political effort in designing
better facilities for cyclists, pedestrians, bus riders, etc, rather than just promising people some pawltry
bit of free money for votes and PR. Nobody is going to start cycling to work over at most a few
measly tens of dollars - it's just an attempt at preaching to the choir. Another bad component of
this proposal is that it rewards people for commuting longer distances, which is just plain wrong.

I know a wealthy lawyer who owed the IRS about 150,000 in income taxes last year. He bought a $100,000 Hummer, and the IRS allowed him to deduct the entire $100,000 from his taxes as "business equipment". He was using a tax "loophole" that was designed for farmers and farm equipment. Supposedly, the law as been changed to prevent lawyers from deducting "farm equipment" this year.

And, I was thinking about his $100,000 gift as I was riding to a job assignment on my bike. The IRS is not going to give me a penny for the "wear and tear" on my tires and bike. Not a penny for the "fuel" I bought at Starbucks. And, I was not "tearing up" the road the way a Hummer does, nor polluting the poisonous air that is a "gift" to the children of Texas from our ruling political party.

Who said "Life ain't fair"?

I predict that 99% of New Jersey workers will claim to be bicycle commuters. How would the state verify this?

As a NJ bike commuter,

I suggest a race

1)Fix a rear tire flat using gum and a dollar bill
2)flip off the next motorist who passes you too close
3)race 10 miles, avoiding potholes and contruction cones

I guarantee that I could tell who is lying or not.

:)

Jay