Bicycle commuters included in U.S. federal bailout

President Bush with his bicycleAnd footbikes are bicycles (bi=two, cycle=wheel), with none of the accoutrements of motor vehicles (heck, not even all the accoutrements of bicycles). As part of the federal bailout, the qualified transportation fringe – yep, that’s us – who ride their bicycles to work can get reimbursement for up to $20 a month from their employer.

The final version of House Resolution 1424 makes the following changes to Section 132 of the tax code:

26 U.S.C. §132

(f) Qualified transportation fringe

(1) In general

For purposes of this section, the term qualified transportation fringe means any of the following provided by an employer to an employee:

(D) Any qualified bicycle commuting reimbursement.

(2) Limitation on exclusion

The amount of the fringe benefits which are provided by an employer to any employee and which may be excluded from gross income under subsection (a)(5) shall not exceed –

(C) the applicable annual limitation in the case of any qualified bicycle commuting reimbursement.

(5) Definitions

For purposes of this subsection –

(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 [other transportation fringe] benefit….

Thanks to Jeff at the FootbikeUSA ‘blog.

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