Great Bicycle News!

[applez]

As part of the $700bn bailout, H.R.1424's Sec. 211* includes a Fringe Benefit to Bicycle CommutersEmployers can claim a tax credit of up to $20 per month per employee reimbursed to that amount for reasonable expenses associated with their bicycling to work

Comments

[davefish]

We have the "cycle to work" scheme.

http://www.dft.gov.uk/pgr/sustainable/cycling/cycletoworkschemeimplementat5732?page=1

Basically work loan you the money for a new bike interest free and you pay it off as salary sacrifice over the next year. The big benefit of this is that it comes out of your pay before it gets taxed, so you save lots!

[applez]

Nice! Alas, in these hard economic times, I don't think anyone would go for a salary cut, even a pre-taxed one. Additionally, it's damning to know that this is the first inkling of authentic "fair play" for bicycles to enter federal law.

EDIT: Also, as the US law is written, an employer could pursue a similar reimbursement plan, since there's a "15 month" period used for a 'year.' Someone could afford a used bike with some fixing for $300.

[davefish]

It is a "salary sacrifice" so you don't actually loose out, as once you have paid off your "loan" your money goes back up. Essentially you get a year interest free credit to buy a bike tax-free.

[applez]

Yep, I understand completely, I have a similar accounting option for some of my medical expenses. Alas, I think most people will choose money in the pocket now, rather than more money (and cost savings) later.