Question for Fellow Bicycle Commuters

[maximus]

As many of you know, starting the first of this year the "Bicycle Commuter Tax Provision" was put into a effect. In a nutshell, if a bicycle is your primary mode of transportation - then you are entitled to a $20 tax-free reimbursement per month by your employer for your cycling expenses. The employer can then write off the $240 at the end of the year.

I have read endless articles on this great benefit - but unfortunately the guidelines for which an employer applies/begins instituting this benefit are vague at best...

Does anyone out there have an employer who is providing this benefit?

For those who are unfamiliar with this here are some decent articles which explain it:

http://www.sfbike.org/?commute

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

:beer:

[bhungerford]

i tried to get our HR to honor this, and they've "been working" on a way to do it. i'm not counting on anything.

[gomez308]

i tried to get our HR to honor this, and they've "been working" on a way to do it. i'm not counting on anything.

Ditto for me.

[csm]

the shop I turn wrenches in part-time has implemented this. the bookeeper says the rules are very vague about the whole thing.

[Ahneida Ride]

I ride a Pogo Stick to work ....

I want a Pogo stick exemption !!!!

[Jeff N.]

Is it retroactive? I've been commuting since '89! :rolleyes: Jeff N.

[sevencyclist]

Stanford University has clean air cash program. Don't know if this is how they fund the program. The program has been in place for quite a few years already.

http://transportation.stanford.edu/alt_transportation/CleanAirCash.shtml

http://transportation.stanford.edu/alt_transportation/BikingAtStanford.shtml

[maximus]

I have been pressing my employer (a rather large - but somewhat progressive) corporation to offer these benefits. At this point my voice feels a little lost. I have also been getting the "working on it" excuse.

It is unfortunate that these benefits are out there but they are such a pain in the ass to understand or take advantage of (not unlike other govt "benefits"). If you are working the books and have absolutely no interest in bicycle commuting - then when are you going to decide to make it a priority?

In my office of 200 here in DC - I am one of 6 bicycle commuters. Just have to keep pushing until someone gets annoyed enough to move on it. Afterall, a good portion of this office receives public transportation (metro) benefits tax-free...

[jasond]

As many of you know, starting the first of this year the "Bicycle Commuter Tax Provision" was put into a effect. In a nutshell, if a bicycle is your primary mode of transportation - then you are entitled to a $20 tax-free reimbursement per month by your employer for your cycling expenses. The employer can then write off the $240 at the end of the year.

When I read through one of the articles I got the impression that this is not a tax free reimbursement made by your company.

I got the impression that it's more like a medical flex spending account. For example, you have $20 pre tax taken out of your paycheck a month and then you must sumbit a reimbursement form with valid expenses related to bicycle maintenance. Your company then reimburses you with your money. There was some vague talk about a third party company taking care of the funds like with most medical flex spending accounts.

So this is not a free $240 a year. All the government is doing is allowing you to spend up to $240 on your bicycle tax free. So the benefit to you is what ever your tax rate is.

If you were taxed at a rate of 30% and you were going to spend $240 on bicycle repairs you would have to make $342.86 ($102.86 paid to federal government in taxes). So your benefit would be about $102.

I haven't looked at the tax code as I haven't searched that heavily for it this is just my take on the article.

J

[xjoex]

I work at a university and assumed a university would be all over this. I contacted them in November of last year and they have been "working on it", or ignoring it ever since. The directory of HR did finally email me saying the guidance was vague and they did not know what to do.

-Joe

[Kevan]

I ride a Pogo Stick to work ....

I want a Pogo stick exemption !!!!

but you'll have to wait until next "spring".

[maximus]

When I read through one of the articles below I got the impression that this is not a tax free reimbursement made by your company.


I think that could be a very valid impression and had not interpreted that way. That interpretation would be very similar to how my company participates in a "metro (subway) check program" - where each employee can define a set amount to come out of their monthly salary toward commuting via train free of tax.

Though the reading I have done refers to the $20 as a "reimbursement" for cycling expenses (from a pair of gloves to the purchase of a new bike or repair) given the employee justifies it with receipts. That gave me the impression it was $20 which the company pays then writes off at the end of the year.

Again - so very vague.

Congressman Earl Blumenauer spearheaded the legislation of this act. Here is his brief: http://blumenauer.house.gov/index.php?option=com_content&task=view&id=817&Itemid=167

[djg]

Didn't znfndl once post that he was getting something?

I get bupkus in this regard (although I really cannot complain from a bike commuter's standpoint -- I ride into a secure garage in my building, have secure indoor bike parking, a locker in a locker-room (showers, the works) -- it's all pretty convenient).

[Ahneida Ride]

I want LESS government intervention in my life .... Not more ...

There is no free lunch. Next is the Bicycle Tax.

How employees arrive at work is the employees business, not the
employer.

We also then need a walk to work tax rebate and a home office rebate and
and even more generous incentives for those who bicycle to their home office.

[maximus]

I want LESS government intervention in my life .... Not more ..

Totally.

Though it is a good feeling as a taxpaying citizen to know that I can get a little something back toward a habit I consider healthy for myself and the environment.

Anyway, that is a whole dif discussion ;) And hey... 240 bucks....how many rolls of your Handlebra can I buy with that?!

:p