Tax Break for Bicycle Commuters
#1
His Brain is Gone!
Thread Starter
Join Date: Sep 2006
Location: Paoli, Wisconsin
Posts: 9,979
Bikes: RANS Stratus, Bridgestone CB-1, Trek 7600, Sun EZ-Rider AX, Fuji Absolute 1.0, Cayne Rambler 3
Mentioned: 1 Post(s)
Tagged: 0 Thread(s)
Quoted: 2 Post(s)
Likes: 0
Liked 1 Time
in
1 Post
Tax Break for Bicycle Commuters
From my local paper:
Lewis Clark is hard-core.
A senior network specialist at TDS Telecom in Madison, Clark rides regularly to his office via bicycle -- even when the snow starts to fly.
"There are only two of us here who commute all winter," says Clark, who has a four-mile ride each way to the TDS headquarters on Junction Road.
No wonder Clark is excited over a little-known benefit for bicycle commuters tucked into the $700 billion federal bailout package.
Starting next month, employees who use bikes as their primary means of transportation to work will be eligible for a $20-a-month, tax-free reimbursement from their employers for bicycle-related expenses. In return, employers will be able to deduct the expense from their federal taxes.
Clark is already bugging his company's HR department to take a look into the reimbursement program.
"I'm very curious to see how this is accepted by the big companies, but it's sure something I would like to take advantage of," he says.
Bicycle advocates for years have been trying to get a commuting rebate measure passed in Washington. They finally succeeded in October when Congress rushed through the Wall Street bailout package and legislators squeezed in pet projects.
The League of American Bicyclists estimates the program will cost about $1 million a year due to the new employer write-off. That's not much money in the greater scheme of things but does add some legitimacy to bicycle commuting and gives it credibility as a transportation alternative.
The $20 rebate could be used to, among other things, purchase, store, maintain or repair bikes that are used for a substantial portion of an employee's commute. You wonder if hot coffee is a covered expense?
Lewis Clark is hard-core.
A senior network specialist at TDS Telecom in Madison, Clark rides regularly to his office via bicycle -- even when the snow starts to fly.
"There are only two of us here who commute all winter," says Clark, who has a four-mile ride each way to the TDS headquarters on Junction Road.
No wonder Clark is excited over a little-known benefit for bicycle commuters tucked into the $700 billion federal bailout package.
Starting next month, employees who use bikes as their primary means of transportation to work will be eligible for a $20-a-month, tax-free reimbursement from their employers for bicycle-related expenses. In return, employers will be able to deduct the expense from their federal taxes.
Clark is already bugging his company's HR department to take a look into the reimbursement program.
"I'm very curious to see how this is accepted by the big companies, but it's sure something I would like to take advantage of," he says.
Bicycle advocates for years have been trying to get a commuting rebate measure passed in Washington. They finally succeeded in October when Congress rushed through the Wall Street bailout package and legislators squeezed in pet projects.
The League of American Bicyclists estimates the program will cost about $1 million a year due to the new employer write-off. That's not much money in the greater scheme of things but does add some legitimacy to bicycle commuting and gives it credibility as a transportation alternative.
The $20 rebate could be used to, among other things, purchase, store, maintain or repair bikes that are used for a substantial portion of an employee's commute. You wonder if hot coffee is a covered expense?
__________________
"Too often I would hear men boast of the miles covered that day, rarely of what they had seen." Louis L'Amour
There are two types of road bikers: bikers who are faster than me, and me. Bruce Cameron - Denver Post
"Too often I would hear men boast of the miles covered that day, rarely of what they had seen." Louis L'Amour
There are two types of road bikers: bikers who are faster than me, and me. Bruce Cameron - Denver Post
#2
Banned.
Join Date: Jan 2006
Location: Post-partisan Paradise
Posts: 4,938
Bikes: GF Wahoo '05, Trek T1000 '04, Lemond Buenos Aires '07
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
Likes: 0
Liked 7 Times
in
2 Posts
What emits more carbon, a properly tuned Prius on a short commute, or a huffing and puffing cyclist covering the same distance?
Support your answer.
Support your answer.
#3
Time for a change.
Join Date: Jan 2004
Location: 6 miles inland from the coast of Sussex, in the South East of England
Posts: 19,913
Bikes: Dale MT2000. Bianchi FS920 Kona Explosif. Giant TCR C. Boreas Ignis. Pinarello Fp Uno.
Mentioned: 2 Post(s)
Tagged: 0 Thread(s)
Quoted: 3 Post(s)
Likes: 0
Liked 5 Times
in
4 Posts
There is a scheme over here- in certain towns- where car parking spaces at work have to pay a tax. Payable by the company and then passed onto the employee as a charge. So what would you rather do? Pay $50 a month to park your car or commute by bus- train or bike? People over here will pay the $50.
__________________
How long was I in the army? Five foot seven.
Spike Milligan
How long was I in the army? Five foot seven.
Spike Milligan
#5
Senior Member
So... say I was interested in approaching HR where I work about implementing this as part of their commuter reimbursement program--where can I point them to information about actually getting this going? Not reportage, but actual gov't agency responsible for oversight, where those that do such things could find out how to get in on the scheme--IRS? Transportation?
#6
Senior Member
Join Date: Mar 2006
Location: Montgomery County, Pennsylvania
Posts: 6,489
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 1 Post(s)
Likes: 0
Liked 6 Times
in
2 Posts
Back to the OP. I'd like to believe this is a step in the right direction. Yet, I'm skeptical. It could be a minor concession offered to appease with little intent to make any real or significant change down the line. Does that sound like a comment from someone who has less that a favorable view of most career politicians?
I also wonder how it will work for not-for-profit companies that aren't paying traxes.
__________________
A conclusion is the place where you got tired of thinking. - S. Wright
Favorite rides in the stable: Indy Fab CJ Ti - Colnago MXL - S-Works Roubaix - Habanero Team Issue - Jamis Eclipse carbon/831
A conclusion is the place where you got tired of thinking. - S. Wright
Favorite rides in the stable: Indy Fab CJ Ti - Colnago MXL - S-Works Roubaix - Habanero Team Issue - Jamis Eclipse carbon/831
Last edited by NOS88; 12-03-08 at 04:54 PM.
#8
Boomer
Join Date: Nov 2003
Posts: 7,214
Bikes: Diamondback Clarity II frame homebuilt.
Mentioned: 106 Post(s)
Tagged: 0 Thread(s)
Quoted: 16098 Post(s)
Liked 1,457 Times
in
1,064 Posts
I wonder how much that is going to cost the accounting dept of the average company. I suspect for it to work, the bicycle commuter is going to have some leverage with the law to force the company to go along with the program.
It is a worthwile, if mostly symbolic, start though.
Just think, we can go a long way toward releaving the downturn in American jobs by creating a whole new division in government.........the "Department Of Urban Bicycle Transportation"...
It is a worthwile, if mostly symbolic, start though.
Just think, we can go a long way toward releaving the downturn in American jobs by creating a whole new division in government.........the "Department Of Urban Bicycle Transportation"...
#9
Time for a change.
Join Date: Jan 2004
Location: 6 miles inland from the coast of Sussex, in the South East of England
Posts: 19,913
Bikes: Dale MT2000. Bianchi FS920 Kona Explosif. Giant TCR C. Boreas Ignis. Pinarello Fp Uno.
Mentioned: 2 Post(s)
Tagged: 0 Thread(s)
Quoted: 3 Post(s)
Likes: 0
Liked 5 Times
in
4 Posts
I wonder how much that is going to cost the accounting dept of the average company. I suspect for it to work, the bicycle commuter is going to have some leverage with the law to force the company to go along with the program.
It is a worthwile, if mostly symbolic, start though.
Just think, we can go a long way toward releaving the downturn in American jobs by creating a whole new division in government.........the "Department Of Urban Bicycle Transportation"...
It is a worthwile, if mostly symbolic, start though.
Just think, we can go a long way toward releaving the downturn in American jobs by creating a whole new division in government.........the "Department Of Urban Bicycle Transportation"...
__________________
How long was I in the army? Five foot seven.
Spike Milligan
How long was I in the army? Five foot seven.
Spike Milligan