SEC. 211. TRANSPORTATION FRINGE BENEFIT TO BICYCLE COMMUTERS.
Here's the exact text that was in the bailout bill!
(a) In General- Paragraph (1) of section 132(f) is amended by adding at the end the following: ‘(D) Any qualified bicycle commuting reimbursement.’.
(b) Limitation on Exclusion- Paragraph (2) of section 132(f) is amended by striking ‘and’ at the end of subparagraph (A), by striking the period at the end of subparagraph (B) and inserting ‘, and’, and by adding at the end the following new subparagraph: ‘(C) the applicable annual limitation in the case of any qualified bicycle commuting reimbursement.’.
(c) Definitions- Paragraph (5) of section 132(f) is amended by adding at the end the following:
‘(F) DEFINITIONS RELATED TO BICYCLE COMMUTING REIMBURSEMENT-
‘(i) QUALIFIED BICYCLE COMMUTING REIMBURSEMENT- The term ‘qualified bicycle commuting reimbursement’ means, with respect to any calendar year, any employer reimbursement during the 15-month period beginning with the first day of such calendar year for reasonable expenses incurred by the employee during such calendar year for the purchase of a bicycle and bicycle improvements, repair, and storage, if such bicycle is regularly used for travel between the employee’s residence and place of employment.
‘(ii) APPLICABLE ANNUAL LIMITATION- The term ‘applicable annual limitation’ means, with respect to any employee for any calendar year, the product of $20 multiplied by the number of qualified bicycle commuting months during such year.
‘(iii) QUALIFIED BICYCLE COMMUTING MONTH- The term ‘qualified bicycle commuting month’ means, with respect to any employee, any month during which such employee--
‘(I) regularly uses the bicycle for a substantial portion of the travel between the employee’s residence and place of employment, and
‘(II) does not receive any benefit described in subparagraph (A), (B), or (C) of paragraph (1).’.
(d) Constructive Receipt of Benefit- Paragraph (4) of section 132(f) is amended by inserting ‘(other than a qualified bicycle commuting reimbursement)’ after ‘qualified transportation fringe’.
(e) Effective Date- The amendments made by this section shall apply to taxable years beginning after December 31, 2008.
(a) In General- Paragraph (1) of section 132(f) is amended by adding at the end the following: ‘(D) Any qualified bicycle commuting reimbursement.’.
(b) Limitation on Exclusion- Paragraph (2) of section 132(f) is amended by striking ‘and’ at the end of subparagraph (A), by striking the period at the end of subparagraph (B) and inserting ‘, and’, and by adding at the end the following new subparagraph: ‘(C) the applicable annual limitation in the case of any qualified bicycle commuting reimbursement.’.
(c) Definitions- Paragraph (5) of section 132(f) is amended by adding at the end the following:
‘(F) DEFINITIONS RELATED TO BICYCLE COMMUTING REIMBURSEMENT-
‘(i) QUALIFIED BICYCLE COMMUTING REIMBURSEMENT- The term ‘qualified bicycle commuting reimbursement’ means, with respect to any calendar year, any employer reimbursement during the 15-month period beginning with the first day of such calendar year for reasonable expenses incurred by the employee during such calendar year for the purchase of a bicycle and bicycle improvements, repair, and storage, if such bicycle is regularly used for travel between the employee’s residence and place of employment.
‘(ii) APPLICABLE ANNUAL LIMITATION- The term ‘applicable annual limitation’ means, with respect to any employee for any calendar year, the product of $20 multiplied by the number of qualified bicycle commuting months during such year.
‘(iii) QUALIFIED BICYCLE COMMUTING MONTH- The term ‘qualified bicycle commuting month’ means, with respect to any employee, any month during which such employee--
‘(I) regularly uses the bicycle for a substantial portion of the travel between the employee’s residence and place of employment, and
‘(II) does not receive any benefit described in subparagraph (A), (B), or (C) of paragraph (1).’.
(d) Constructive Receipt of Benefit- Paragraph (4) of section 132(f) is amended by inserting ‘(other than a qualified bicycle commuting reimbursement)’ after ‘qualified transportation fringe’.
(e) Effective Date- The amendments made by this section shall apply to taxable years beginning after December 31, 2008.
Congress Passes Commuter Act
Employers of people who bike to work stand to gain a $20 per month tax credit per cycling employee, according to the final version of the Wall Street bailout bill, H.R. 1424, passed this afternoon...
What does bicycle commuting have to do with credit issues or covering the debt racked up on Wall Street? Bicycle commuting advocate Earl Blumenauer, a Democratic Representative from Oregon, was one of the 228 Representatives who voted against the House version of the bailout package on Monday. House members looking to pass a bailout bill needed to convince as least 12 of the dissenters to switch their position and vote for a bailout bill...
Congressman Blumenauer spearheaded a seven-year campaign to extend commuter tax benefits to those who bike to work. Andy Clarke, president of the League of American Bicyclists, said the Bicycle Commuter Act has been held up getting through with previous bills. “It’s been attached to a variety of different bills or devices—climate change, energy, transportation,” Clarke said. “It’s ironic that it would wind up in a financial rescue package, but we’ll take it. I’m not going to quibble with the method; I’m glad to see it done.” (Read more.)
A number of blogs have already commented on the inclusion of the Bicycle Commuter Act into the ridiculous $700 billion Federal pork barrel bailout of Wall Street, including great coverage by Cyclelicious, BikePortland.org, StreetsBlog, and a survey of bicycle commuting attitudes by Outside Online. The bicycle commuter provisions of the bailout have also aroused hostility in less supportive quarters, summarized by Philadelphia Bicycle News:
"Bicycles are in the headlines today, but not in a good way. (The) Bicycle Commuter Act is tied into the Tax Bailout Bill lumping bicycle commuters with Rum Makers and tax breaks for NASCAR. They are labeling the Bicycle Commuter Tax Break as Pork, does this mean that Transit Check and commuter parking benefits are also Pork?"
As I understand it, the Bicycle Commuter Act provides employers a tax break of up to $20 a month if they give some bicycle commuting benefits to their employees. It's a modest step forward. "It may not be a total game changer," the LAB's Clarke told Bicycle Retailer & Industry News. "It's still a relatively small break. But it gets us closer to the kind of treatment that cyclists in the U.K. and other parts of the world have had for years."
This measure may attract a few additional bicycle commuters. Personally, I would have preferred that $700 billion spent on beneficial economy stimulating public works projects, such as passenger rail, bicycle facilities, and transit. However, this bailout will likely have another more significant favorable effect. Essentially, the Fed policy seems to be dollar devaluation, reducing the debt crisis through inflation. This can only mean even higher prices for gas, increasing the relative appeal of bicycle commuting.
Via Bike Commute Tips
What does bicycle commuting have to do with credit issues or covering the debt racked up on Wall Street? Bicycle commuting advocate Earl Blumenauer, a Democratic Representative from Oregon, was one of the 228 Representatives who voted against the House version of the bailout package on Monday. House members looking to pass a bailout bill needed to convince as least 12 of the dissenters to switch their position and vote for a bailout bill...
Congressman Blumenauer spearheaded a seven-year campaign to extend commuter tax benefits to those who bike to work. Andy Clarke, president of the League of American Bicyclists, said the Bicycle Commuter Act has been held up getting through with previous bills. “It’s been attached to a variety of different bills or devices—climate change, energy, transportation,” Clarke said. “It’s ironic that it would wind up in a financial rescue package, but we’ll take it. I’m not going to quibble with the method; I’m glad to see it done.” (Read more.)
A number of blogs have already commented on the inclusion of the Bicycle Commuter Act into the ridiculous $700 billion Federal pork barrel bailout of Wall Street, including great coverage by Cyclelicious, BikePortland.org, StreetsBlog, and a survey of bicycle commuting attitudes by Outside Online. The bicycle commuter provisions of the bailout have also aroused hostility in less supportive quarters, summarized by Philadelphia Bicycle News:
"Bicycles are in the headlines today, but not in a good way. (The) Bicycle Commuter Act is tied into the Tax Bailout Bill lumping bicycle commuters with Rum Makers and tax breaks for NASCAR. They are labeling the Bicycle Commuter Tax Break as Pork, does this mean that Transit Check and commuter parking benefits are also Pork?"
As I understand it, the Bicycle Commuter Act provides employers a tax break of up to $20 a month if they give some bicycle commuting benefits to their employees. It's a modest step forward. "It may not be a total game changer," the LAB's Clarke told Bicycle Retailer & Industry News. "It's still a relatively small break. But it gets us closer to the kind of treatment that cyclists in the U.K. and other parts of the world have had for years."
This measure may attract a few additional bicycle commuters. Personally, I would have preferred that $700 billion spent on beneficial economy stimulating public works projects, such as passenger rail, bicycle facilities, and transit. However, this bailout will likely have another more significant favorable effect. Essentially, the Fed policy seems to be dollar devaluation, reducing the debt crisis through inflation. This can only mean even higher prices for gas, increasing the relative appeal of bicycle commuting.
Via Bike Commute Tips
Bicycle Commuter Act Passes House & Senate
Last week the U.S. Senate, amended H.R. 6049, the Energy and Tax Extenders Act of 2008, by passing several amendments which provide for clean energy incentives and extend expiring tax cuts. One of the amendments, which wonSenate passage by an overwhelming vote of 93-2, was the Energy Improvement and Extension Act of 2008, which contains the bicycle commuter tax benefit provision we have been seeking for years. As last week’s Senate vote replaced the text of H.R. 6049, energy tax legislation approved in the House of Representatives earlier this year, we are currently waiting to hear if the House of Representatives will agree to take up the Senate’s amended legislation.
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