Commuter Tax Credits and Bikes

Caution! The following outlines some rather boring, but potentially beneficial, information

As of January 1, 2009, the federal government has been offering tax incentives to employers and employees who ride bikes to work. Bicyclists and environmental advocates considered it a move toward putting the greenest form of commuting on a level playing field with public transportation and carpooling.

The bike benefit was 20 dollars per month to be compensated by the employer to the employee for repairs, purchase and general upkeep. Tax credits for public transit and carpooling had a maximum monthly benefit of 230 dollars. However, for public transit and carpooling, the employer could include the benefit in pre-tax income, making these more appealing to employers. The bicycle credit required employers to offer a 20 dollar, tax free bonus to each qualified employee (bicycle commuter).

Representative Earl Blumenhauer of Oregon has been behind the push for these laws for over 7 years, and is currently working on H.R. 863, which would allow bicyclists to receive the same benefits as those granted to carpoolers and users of public transit. In fact, the motion would also allow both credits to be claimed in the same month, to discourage the use of personal vehicles when bicycling is not possible.

Electric bikes count, too
The credit is extended to users of electric bikes and is unlikely to change in this regard. And with good reason; the electric bike is unquestionably the best option next to a traditional bicycle. Now, to claim the credit you don't need to be a super athlete or a bike fanatic. All you need is an electric bike and a sincere enjoyment of a pleasant bike ride on both ends of your work day.

The law passing and ensuing enthusiasm for biking to work, whether on electric or traditional bicycles, could be the impetus to change the public's view on what is a reasonable commute. Collective thinking and an attachment to "normal" ways of doing things has always been a hindrance on social change and movement toward a better, albeit drastically different, behavior. This gentle legislative nudge could cause an increased demand in electric bikes which would in turn signal producers to make more. Who knows, maybe in a few years everybody will think it's silly to take a car for a trip of only a couple miles?