mishmashmusic

I'm trying to figure out the bike commuting tax credit that was buried in the stimulus bill to present it to my employer --- is anyone doing it?

noglider 

I wish I had heard about that. I did my taxes a couple of weeks ago.

JeffS

Doesn't work that way.

And no, noone's employer is using it at this point. They either can't be bothered to care about it, or can't find any actual info on it if they did care. (unless someone has made a breakthrough since the last time this thread was posted).

bdcheung

we're tax exempt, so no.

mishmashmusic

I work for a small company, and the HR head is looking into it for me. The stuff I've found out about it online is rather vague (imagine that). Looks like it was just shoved into the stimulus plan without much thought, rhyme or reason.

I was just curious if anyone else had figured it out and was making it work.

bullschuck

I still haven't heard anything further at my office. I think I'll try to call someone at HR and see if there's something in the works.

Andy_K 

https://www.bikeleague.org/news/100708faq.php

https://bikeportland.org/2009/03/12/b...-commuter-act/

Sawtooth

From what I have gathered, most HR folks would rather pay you 20$ out of their own pocket to have you shut up and walk away so they don't have to worry about it. I know of nobody who is actually moving forward toward getting it.

Sirrus Rider

It's too little money for too much effort.

snowman40

I don't think an extra $20 a month is really worth the hassle. I make that difference up in OT.

It is kind of like going to your dad and begging for an advance on your allowance isn't it? It would be better if it was a purchase reimbursement, similar to medical reimbursements but better (because those go poof and disappear each year if you don't use it).

ItsJustMe

I think they'd have to have dozens of people using it to make it worth doing the paperwork. As has been said, they'd be money ahead just handing you $20 a month and not bothering to fill out the paperwork to be reimbursed.

Scubachisteve

I'm an HR manager. I just started a S.132 commuter benefit fringe plan (which is what the bicycle benefit falls under). I put the plan in place to help out a few train-riders, including myself, get a tax-break on our metro passes.

We're tax-exempt so it doesn't really benefit our employer to subsidize the mass-transit or bicycle expenses. So we've got to stick with enjoying the pre-tax cash for train passes (Not bad, considering my monthly pass is $193). Yes, they changed the monthly amount you can defer from $120 to $230.

Just in case you're wondering, you can't do the bicycle benefit ($20 a month) with your own pre-tax dollars like you can with the parking or mass-transit benefit. It has to be given to you by the employer, and they get reimbursed via tax-credit from uncle sam, effectively tying the incentive to the bailout dollars and making you a ******* for taking advantage of it (only joking...sort of).

Worth noting as well. If you already have a commuter plan setup at your work it doesn't cost the employer anything more to add the bicycle benefit--just amend the plan document to include it. I'm not sure that payroll would even be involved unless they'd give you the cash in your paycheck, but I'm not really sure about that.

Also worth noting. You can't take advantage of two benefits under the S.132 plan. So, you can either take the $20 cash for biking to work, OR take the tax benefit of the mass-transit plan. (If you're lucky enough to work for a big company they might even buy your passes for you, or buy them wholesale from a metro company and sell them to you at a discount with your pre-tax dollars.)

**So, the best way to go about getting the bicycle benefit, is to rally the other mass-transit users (including those paying for parking near the office or a public transport depot), and have a S.132 plan set up. Working in a for-profit sector is sort of a necessity to, and something I highly recommend**

Disclaimer: Nothing I've written above should be construed as remotely accurate. Consult a professional. I'm just a cyclist who takes 8-hour breaks, 5 days a week. Any inaccuracies in my summary are the direct result of the ever constant changes in regulation and federal tax codes.

Andy_K 

The HR guy here says that it's not even a matter of the government reimbursing the company. The company merely gets to write it off on taxes, which means that they get much less than $20 back.

Scubachisteve

Correct, it simply lowers the company's taxable income by $20(x)

SlowRoller

No, you're still $240 less for the year regardless of the OT you do. I know it doesn't seem like much in the big picture, but that's a heck of a nice bag, a nice dynohub, a nice lighting system, etc...

mishmashmusic

Well leave it to the government to make it simple and effective. Geez, what a bunch of winners we have working for us in Washington...

Tyrell

I'm helping to push it at my company but not much progress thus far.

evblazer

As one of the HR people I've given up and just give myself $20 out of my own pocket. We do have the S.132 benefit and we get our mass transit out of pre-tax dollars but adding the bicycle benefit is a no go.
Perhaps the changes proposed will make it more possible or they'll make it even more complicated and forever not implemented.
Oh and as an HR person I don't get OT since they worked our job descriptions and duties so we are all exempt

JiveTurkey

I thought it was a tax credit for the company, not a tax deduction. Edit, nevermind. Just read through one of the links above.

crhilton

It seems to be lost in the todo list (or it's been quietly forgotten) at my company. As with everything else involving business and government it's a giant FAIL.

JeffC

Please blame Congress who passed the law not all of government.

I'm trying to get my employer on board too but have not had a lot of luck.

The benefit is still net of tax. That is if you are in the 25% federal income tax bracket you would have to earn $320 to net $240 after federal income tax. Granted $320 is not a lot but I would still have to work a fair amount of time to get $320 in pre-tax income as I suspect many others would.

tim24k

I'm getting the $20.00 bike commuting tax credit from my work each month. At $240.00 a year it does help, a little.

Ciao,
O^o

unterhausen

the Congresscritter that put the benefit in the stimulus recognizes the failings of the legeslation and is trying to fix it. This would make it the same as the parking/mass transit benefit. Apparently he also wants to make it so you can get both cycling and mass transit up to the limit for mass transit credit.

mishmashmusic

FYI--- Here's what I've found so far from my company's accountant, they are still looking into it:

"...from what I understand the employer decides on whether they want to offer up to $20.00 per month as a pre tax deduction on the employees wages or if they want to have a reimbursement program set up with the employee. If the reimbursement program is set up then the employee has to provide receipts for the reimbursements requested and can only get up to $20.00 per month and a total of $240.00 per year. This is a new tax benefit and the wording can be difficult to understand..."

Tadley Porter

Lack of definition of what constitutes significant commute by bicycle is the stumbling block at my company. Without definitions of the terms of the provision my company won't participate. Bummer...wouldn't mind the small contribution to commuter bike upgrades!