Tax Boon to Cyclists?

Why not bail-out bike owners? Why can't the government cut a tax deduction to people buying new bikes? Cycling is green energy! Make it substantial, like a thousand dollars off your taxable income. Comments?

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Permalink Reply by igz on January 15, 2010 at 3:43am
there are rebates for biking to work. there is a mileage minimum, and your commute can be combined with bus/train, but majority mileage needs to be bike.

i dont have the info readily handy, but some facetime with google im sure will return answers.
Permalink Reply by Duppie on January 15, 2010 at 4:42am
Since January 1, 2009 there is a tax benefit for bicyclists that commute to work. It’s $20/month tax free reimbursement provided through your employer. It cannot be combined with commuter transit benefits. The main problem with it is/was that it was unclear how to implement this.
I haven’t even asked my HR department. They give a whole new meaning to the word non-responsive

Does anyone work in the Chicago area whose employer provides this benefit?
Permalink Reply by Arrak Thumrs on January 15, 2010 at 5:07am
Duppie gets to the core of my concern over an idea like this. All this tax minutia complicates an already over-complicated tax code. I have grave doubts such social "incentives" really change people's minds on transportation options (thus; its funding, viability, and built environment).
Permalink Reply by Anne on January 15, 2010 at 5:07am
I recall there was a thread by a guy working with his HR dept on implementing a program at his work.
Full text of the part of the Bailout Bill as pertains to cyclists here: http://turinbicycle.com/articles/commuters-get-bailed-out-pg400.htm

Duppie said:
Since January 1, 2009 there is a tax benefit for bicyclists that commute to work. It’s $20/month tax free reimbursement provided through your employer. It cannot be combined with commuter transit benefits. The main problem with it is/was that it was unclear how to implement this.
I haven’t even asked my HR department. They give a whole new meaning to the word non-responsive

Does anyone work in the Chicago area whose employer provides this benefit?
Permalink Reply by Duppie on January 15, 2010 at 6:02am
You mean this discussion? There is a link to some other discussion that appears to have been deleted

It appears that posters could not figure out how to make this work

H3N3 said:
Must have been before your time-- there was a monster thread here about this in which someone documented his attempt to take advantage of this benefit in great detail. Too bad the search feature is kaput.
I didn't mention that benefit because I assumed a guy runing a bike shop would know about it already, and because it's really just a meaningless pittance compared to what Robert's is suggesting.

Duppie said:
Since January 1, 2009 there is a tax benefit for bicyclists that commute to work. It’s $20/month tax free reimbursement provided through your employer. It cannot be combined with commuter transit benefits. The main problem with it is/was that it was unclear how to implement this.
I haven’t even asked my HR department. They give a whole new meaning to the word non-responsive

Does anyone work in the Chicago area whose employer provides this benefit?
Permalink Reply by Tank-Ridin' Ryan on January 15, 2010 at 8:25am
Frank,

It was a different discussion. I can't recall the guy's name who started it. I'll let you know if I unearth it.

Duppie said:
You mean this discussion? There is a link to some other discussion that appears to have been deleted

It appears that posters could not figure out how to make this work

H3N3 said:
Must have been before your time-- there was a monster thread here about this in which someone documented his attempt to take advantage of this benefit in great detail. Too bad the search feature is kaput.
I didn't mention that benefit because I assumed a guy runing a bike shop would know about it already, and because it's really just a meaningless pittance compared to what Robert's is suggesting.

Duppie said:
Since January 1, 2009 there is a tax benefit for bicyclists that commute to work. It’s $20/month tax free reimbursement provided through your employer. It cannot be combined with commuter transit benefits. The main problem with it is/was that it was unclear how to implement this.
I haven’t even asked my HR department. They give a whole new meaning to the word non-responsive

Does anyone work in the Chicago area whose employer provides this benefit?
Permalink Reply by Davo on January 15, 2010 at 8:36am
is that something that you can claim on filing taxes?

iggi said:
there are rebates for biking to work. there is a mileage minimum, and your commute can be combined with bus/train, but majority mileage needs to be bike.

i dont have the info readily handy, but some facetime with google im sure will return answers.
Permalink Reply by Tank-Ridin' Ryan on January 15, 2010 at 9:05am
After some searching, I'm thinking the thread is long gone. (Why are original posters allowed to delete their entire threads?)

I searched ATA's discussions and found nothing (I'm sure they responded).

Tank-Ridin' Ryan said:
Frank,

It was a different discussion. I can't recall the guy's name who started it. I'll let you know if I unearth it.

Duppie said:
You mean this discussion? There is a link to some other discussion that appears to have been deleted

It appears that posters could not figure out how to make this work

H3N3 said:
Must have been before your time-- there was a monster thread here about this in which someone documented his attempt to take advantage of this benefit in great detail. Too bad the search feature is kaput.
I didn't mention that benefit because I assumed a guy runing a bike shop would know about it already, and because it's really just a meaningless pittance compared to what Robert's is suggesting.

Duppie said:
Since January 1, 2009 there is a tax benefit for bicyclists that commute to work. It’s $20/month tax free reimbursement provided through your employer. It cannot be combined with commuter transit benefits. The main problem with it is/was that it was unclear how to implement this.
I haven’t even asked my HR department. They give a whole new meaning to the word non-responsive

Does anyone work in the Chicago area whose employer provides this benefit?
Permalink Reply by S on January 15, 2010 at 9:29am
Davo said:
is that something that you can claim on filing taxes?

iggi said:
there are rebates for biking to work. there is a mileage minimum, and your commute can be combined with bus/train, but majority mileage needs to be bike.

i dont have the info readily handy, but some facetime with google im sure will return answers.

No, your employer needs to participate and offer the benefit. The problem is that I don't think the IRS has setup rules on how the benefit needs to be administered so no one is offering it right now.

Permalink Reply by Roberts Cycle on January 15, 2010 at 12:45pm
The commuting benefit has been slow to catch on, sadly. Requiring documentation on the costs that you spent--tho understandable for tax purposes and employer participation--made it a drag. You're right, H3N3 and Arrak, my suggestion would not have involved such minutia, nor was it a pittance. Never mind who's riding to work versus biking for fun. Take one-thousand dollars off your taxable income. Buy a bike.

Duppie, here's an offsite discussion about the Bicycle Commuter Act of 2008: http://bit.ly/TjzLU. I mentioned it on roberts' twitter page in September. i put the $1000 boon on there too, an attempt to stomp for the idea. It has yet to grow legs but we'll see ;]

Like Arrak, I have doubts about social incentives, but if we cut the minutia and maximize the benefit, some of them can work. Anyone recall the tax benefits that were used in the '90s to promote SUV purchases? There's a dubious "benefit"! Maybe we can interest the state reps in cycling incentives...
Permalink Reply by Roberts Cycle on January 18, 2010 at 6:23am
A problem with the tax benefit for bike commuters is the amount of documentation involving the cyclist and the employer. As Duppie posted, it lets bosses pay the cyclist $20 per month, tax free, and as Iggi pointed out the paperwork involves accounting for mileage and money spent, perhaps even the ratio of biking to public trans. A good description can be found at http://bit.ly/TjzLU

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