March 3, 2005
Tax Breaks for Cyclists? Maybe.
Legislation currently being considered by Congress, aptly titled the "Bicycle Commuter Act," would offer those who commute to work by bike a monthly cash reimbursement of $100 and a nice tax break for those who employ them. The League of American Bicylists reports that the measure might pass within the next few months.
So why should this matter to DCist readers? The Washington metropolitan area is relatively bike-friendly, with an extensive network of bike paths including D.C.'s Capital Crescent Trail, Virginia's Mt. Vernon Trail, and Maryland's Anacostia Tributary Trail. D.C. itself has, to date, 12 miles of bike lanes, 50 miles of bike paths, and 64 miles of bicycles routes, with more to come, according to the 2004 Bicycle Master Plan.
Bicycling is already popular in the Washington area, and could get even more popular with such financial incentives. A 1994 survey found that there are an estimated 25,000 bike trips to or from work on a daily basis in the Washington area -- a godsend for an area known for its traffic and crowded public transportation. It was these transportation-related frustrations that seemed to have motivated the 80 percent increase in bicycle commuting that occurred from 1990 to 2000.
And seriously now, $100 extra a month? That's countless happy hours, a good deal of local shows, or, for the men, any of these gifts for a significant other.
(Photo of the bike-riding staff of Rep. Earl Blumenauer, one of Congress' biggest bike supporters, from the League of American Bicyclists.)
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I walk to work, but maybe I should by a bicycle so I can be a good commuter...
I walk to work, but maybe I should buy a bicycle so I can be a good commuter...
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This would be great... I wonder if I would have to bike to work every day to get the money, or just some days.
I commute multi-mode: train then bus, so would that count? Or would I have to slog the entire 20+ miles to get the rebate? It would definitely help offset locker fees!
I'm not a lawyer, nor am I all that good at searching through the tax code to properly answer your question! But this is what I found:
Section 132 of the Internal Revenue Code outlines "Qualified transportation fringes," which essentially means a rebate your employer can provide you for commuting in a certain way (and they benefit from a tax break, or so I understand). The amendment being made would include cycling and set the rebate at $100. That doesn't mean you would definetely get it, but your employer could offer it. If they did, I would guess they would expect you to ride in the majority of the time.
Hey - that's me in the picture. I swear I was wearing a helmet that day.