sorry if this is a repost, but are y'all aware of the bike commuter benefit...

that was signed into law effective January 1? this was included in HR1424 (the $700B bailout bill)

I just learned of it and I'm going through the process of getting my employer to acknowledge it and reimburse me starting in january. I'm curious how other employers are handling this... I'm sure many are completely unaware.

discuss.

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Permalink Reply by Homebuilt on December 22, 2008 at 8:24am
There was an article in the Trib. that basically said that no one knew how to implement it yet until the IRS lays out some guidelines. I wouldn't hold your breath. I would keep up to date on it, and when it seems like it's ready for prime time, compile the info. and approach your company. Asking them to figure it all out probably means it won't happen for most companies.

http://www.chicagotribune.com/features/lifestyle/green/chi-mon-bike...
Permalink Reply by Jamie on December 22, 2008 at 8:27am
good idea. reading more about it now and it seems like those employees that already have some kind of section 132 transportation benefit will probably have an easier time of it.
Permalink Reply by Ethan Spotts on December 22, 2008 at 9:45am
Permalink Reply by Homebuilt on December 23, 2008 at 4:02am
h3 said:
You know, after all I've read I still don't know whether this is $20 in my pocket, or $20 I just don't get taxed on.

Basically the latter is my understanding, unless your employer is really generous. But that's ok by me, I spend far more than that anyway, it might as well be tax free, and taken out up-front.
Permalink Reply by heather s on December 23, 2008 at 4:53am
I've been under the impression that your employer receives the $20 per month, per cyclist, and then they decide if they want to give it to you or invest in amenities like indoor parking, showers, etc.

h3 said:
You know, after all I've read I still don't know whether this is $20 in my pocket, or $20 I just don't get taxed on.
Permalink Reply by S on December 23, 2008 at 5:57am
Yeah, I figured that the benefit will be like the benefits for transit or medical expense accounts. Basically you determine how much you get taken out of your paycheck each month up to the max and then the cash gets placed in an account that you can use to buy the bike related stuff.
Permalink Reply by Ethan Spotts on December 23, 2008 at 7:03am
Here's my understanding of it:

Your company decides to make the benefit available to employees.

$20 per month is deducted pre-tax from your paycheck. This is similar to how transit benefits work and most major paycheck companies like ADP can handle the transaction.

Your company could also decide to provide it as a benefit (dreamy) where they provide $20 per month to each employee as a benefit.

The drawbacks:
It's unclear what receipts can be included (waiting to hear back from IRS...)
Individuals cannot use the bike benefit and a transit benefit in the same month

The advantages:
It's a huge win for bicyclists

I love it. I hope everyone asks for it.

Active Trans is working to find out more and will communicate it when we know. I'll also check this thread for questions and see if I can get answers.

Happy holidays, bicyclists. Stay warm and dry.
Permalink Reply by Ethan Spotts on December 23, 2008 at 11:03am
No, not at all.

The benefit is having the money taken out pre-tax. My employer has a transit benefit where I can buy access to the CTA and the money comes from my paycheck but the advantage is is comes pre-tax.

The bike benefit would work the same (see above).

To put $ in your paycheck, you'd have to convince your employer to offer a bicycle benefit that they would pay for.

This is a tax benefit, not a government bailout package, unfortunately.
Permalink Reply by Ethan Spotts on December 23, 2008 at 11:18am
A huge symbolic win, of course...I'm interested in taking advantage of it.
Permalink Reply by Ethan Spotts on December 23, 2008 at 11:20am
Full disclosure: I'm paid to be excited about it but I am also personally excited about it...makes me feel bicycling is legitimate.

Ethan Spotts said:
A huge symbolic win, of course...I'm interested in taking advantage of it.
Permalink Reply by Ethan Spotts on December 23, 2008 at 11:30am
MARK, I wish I had your pessimism on this…
Permalink Reply by Ethan Spotts on December 23, 2008 at 4:56pm
I guess just general pessismism, MARK...sorry. We can still be friends though, I'm open to listening...

For this thread, I'm really only addressing the bike benefit, not bailouts.

The bike benefit option got added into a bailout and that's how it got passed. It has nothing to do with giving out free money to bicyclists.

Individuals receive the money. It comes out of their pay checks pre-tax. You submit receipts on bike repairs, parts and other things (still to be defined by government). Employers could also provide $20 a month as a company benefit (like free parking or health insurance).

I hope people will take a chance and ask their employers for the bike benefit...it will be a struggle but great if any employers take advantage of it.

There is so much more to get done and the Active Transportation Alliance will be announcing 2009 legislative and policy agenda...I know we'll be pushing for more along these lines.

Happy holidays, chainlinkers!

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