...for the purchase of a bicycle and bicycle improvements, repair, and storage...
Since the legislation includes the actual purchase of a bicycle, it appears that you could purchase a $500 bicycle in January 2009 and get $20 a month reimbursement during the year. Not bad if you really need a new bike.
For those of us who bike commute already and don't need new bike stuff, the benefits are a bit less beneficial. I could get reimbursed for a couple of tires and tubes, maybe a new light, but I expect most of my expenses will be for winter clothing and such which don't appear to be covered.
While the benefits are small, I think it's a good start!
Brian