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New tax break encourages subsidized bicycle commuting

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in HR Management,Human Resources

Don’t be surprised if your employees who are bicycling enthusiasts approach HR about a bicycle commuting benefit recently passed into federal law. Several special interest groups have been touting the law—part of last October’s massive Emergency Economic Stabilization Act—to their members.

The law, called the Bicycle Commuter Act, allows employers of every size—from one-person operations to multistate conglomerates—to deduct the cost of subsidizing bicycle commuting from their federal taxes.

Employers can set up a plan to reimburse employees up to $20 per month for costs associated with biking to work. They can deduct the same amount from company federal taxes.

Reimbursable expenses include the purchase price of a bike, parking costs, repairs and use of shower facilities. The reimbursements are tax-free for employees.

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