Manage Email biking tax benefit
Date:
October 8th 2008
Logan Bikers,
You might be interested to know that the $700 billion bailout bill also included sweeteners for renewable energy, transportation, and fossil fuels in order to get it passed.
One of the more interesting items relates to biking:
Transportation Fringe Benefit to Bicycle Commuters. The Act adds as a qualified transportation fringe benefit reimbursements for reasonable expenses for the purchase, improvement, repair or storage of a bicycle, capped at $20 per month, but only if the employee does not receive any other qualified transportation fringe benefit and regularly uses a bicycle for a substantial portion of travel between home and work (effective for taxable years beginning after December 31, 2008).
IRS Guidance on the existing transportation fringe benefits:
http://www.irs.gov/publications/p15b/ar02.html#d0e2102
As I read it, basically if your employer provides a parking, public transit, etc $ benefit, that can be given to you as a non-taxed benefit through your paycheck, i.e. it's not considered income. I don't think it's a tax credit or anything, nor can you get it if your employer doesn't offer it.
Mike
You might be interested to know that the $700 billion bailout bill also included sweeteners for renewable energy, transportation, and fossil fuels in order to get it passed.
One of the more interesting items relates to biking:
Transportation Fringe Benefit to Bicycle Commuters. The Act adds as a qualified transportation fringe benefit reimbursements for reasonable expenses for the purchase, improvement, repair or storage of a bicycle, capped at $20 per month, but only if the employee does not receive any other qualified transportation fringe benefit and regularly uses a bicycle for a substantial portion of travel between home and work (effective for taxable years beginning after December 31, 2008).
IRS Guidance on the existing transportation fringe benefits:
http://www.irs.gov/publications/p15b/ar02.html#d0e2102
As I read it, basically if your employer provides a parking, public transit, etc $ benefit, that can be given to you as a non-taxed benefit through your paycheck, i.e. it's not considered income. I don't think it's a tax credit or anything, nor can you get it if your employer doesn't offer it.
Mike
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