On Wednesday, March 13, the Bicycle Commuter Act was re-introduced into both the House and Senate. The bills seek to amend the Internal Revenue Code of 1986 to extend the transportation fringe benefit to bicycle commuters. This act was narrowly defeated last year.
The House bill, H.R. 1498, was introduced by Rep. Earl Blumenauer (D-OR) with nine co-sponsors and has been referred to the House Ways and Means Committee.
The Senate bill, S. 858, was introduced by Senator Ron Wyden (D-OR) with seven co-sponsors and has been referred to the Senate Committee on Finance.
The legislation would provide bicyclists with a similar tax benefit to that currently enjoyed by transit users and car parkers, through voluntary, employer-run programs.
Employees who take advantage of this benefit may receive a tax-exempt benefit of up to $200 per month, for drivers participating in qualified parking plans, or $105 per month for those using transit or vanpooling. The employer may also give cash compensation for these costs – although this is included as taxable income to the employee – or allow the employee to take a tax-free deduction for the purchase of transit tickets.
The Bicycle Commuter Act would simply extend the definition of “transportation” in Section 132 (f) of the 1986 IRS code to include “bicycles.” The program is voluntary. The costs of commuting, such as lights, bike maintenance, raingear, panniers, parking (locker rental) and changing facilities, would be reimbursable under this program.
This small incentive to ride rather than drive to and from work should be seen as an important element of broader efforts to tackle climate change as well as traffic congestion, obesity and other critical challenges. For those of us who already commute, it gives us parity with the cagers.
Please urge your Senators and Representatives to co-sponsor this legislation, then to vote for its passage.
How to do it?
The
League of American Bicyclists has an online form you can use to email your Representative and Senators. Visit
http://capwiz.com/lab/issues/alert/?...520176&type=CO and complete the form.