Comments on: Senate Passes Bailout Bill Loaded with Tax Provisions Including Bicycle Commuting Reimbursement

By: facebook login

facebook login — Sat, 08 Oct 2011 00:37:08 +0000

+1 ))

By: John V

John V — Thu, 09 Oct 2008 15:27:45 +0000

j. mork, I read this not as a pre-tax dollars type benefit, like the out-of-pocket health care spending account benefit, but a direct dollar-for-dollar reimbursement the employer can then deduct, also dollar-for-dollar, from its tax bill, so your annualized savings would be $240, not $80.

By: Larry

Larry — Wed, 08 Oct 2008 18:55:17 +0000

The Bicycle Commuter Act attached to the bailout package has been floating around Congress for 7 years. It had one purpose – to correct a disparity that allowed a tax credit to motor vehicle commuters but not to bicycle commuters.

Given the high cost of healthcare, I’m glad this was included in the bailout bill. Business owners can now encourage their employees to bicycle to work, helping employees become healthier via their commute AND providing a tax break that will offset the cost of maintaining their commuter bicycle. In fact, we all stand to gain because this will mean fewer drivers, lower fuel consumption and less pollution.

By: Cameron

Cameron — Wed, 08 Oct 2008 15:01:16 +0000

This is a tax credit not a tax deduction. That means you get the full $240 off of you taxes owed. A tax deduction would take $240 off of your taxable income effectively giving you an $80 deduction in a 30% tax bracket.
-Hope this helps

By: Jon Webb

Jon Webb — Mon, 06 Oct 2008 18:39:37 +0000

The bike commuter tax credit was kicking around on Capitol Hill for a while. I think it had been added to the Renewable Energy bill they stuck in the bailout bill along with every other tax break that was “ready to go.” That’s why it’s in there.
It will work like the transit checks employers can give to subsidize employees use of public transportation. It’s a benefit from the employer, not from the IRS to the employee. So I don’t think it counts against your taxable income. On the other hand, it depends on your employer being willing to set the system up, and that may be too much trouble for a small employer.
There’s probably money to be made by local bicycling groups helping employers take advantage of this.

By: Mark

Mark — Sun, 05 Oct 2008 23:27:44 +0000

From what I understand, your company has to give you a fringe benefit for commuting by bike so that they can turn around and not have to pay any taxes on that part of your salary that goes to pay for your reimbursement.

As to why this was added? It was a sweetener to get the congressmen and senators from Oregon on board with the bail out bill.

By: S. Donovan

S. Donovan — Sat, 04 Oct 2008 02:18:01 +0000

$80 is about the cost of my bike. Not bad!

By: j. mork

j. mork — Fri, 03 Oct 2008 19:21:33 +0000

Wow, $240 pre-tax for a year. In a 30% tax bracket, what, that saves you $80. Exciting :/

By: JES

JES — Fri, 03 Oct 2008 18:37:35 +0000

How would one prove that a cyclist has commuted at any given point?

I ride almost every day all year round. There’s no concrete evidence of it.

And this leaves out the self-employed, as usual.

By: Cj

Cj — Fri, 03 Oct 2008 18:07:12 +0000

Finally!!! It’s about time that those of us who have been making an environmental difference see a little return…