Employers may begin reimbursing employees tax-free for bike commuting costs starting Jan. 1, 2009 under a transportation bill signed by President Bush Oct. 3 .
After seven years of legislative proposals, the bicycle commuter tax benefit has finally become law. The benefit is among the provisions of the Transportation and Housing Choices for Gas Price Relief Act of 2008 that aims to encourage alternative modes of transportation to reduce automotive use. The bill passed both the U.S. House and Senate in early October, and President Bush added his signature on Oct. 3.
The legislation amends the Internal Revenue Code to allow employers to give employees who commute by bike a monthly tax-free stipend of $20 or less. This benefit is modeled after the federal vanpool and transit commuter tax benefit, according to a report by the bicycling advocacy group Bikes Belong.
Bikes Belong thanked Congressman Earl Blumenauer (D-OR) and other members of Congress who worked to advance this legislation, as well as all the devoted bicycle advocates who helped promote it.
