After SVBC and others spent many years advocating for it in Washington, the federal Bicycle Commuter Benefit suddenly became a reality earlier this month as part of the $850 billion bailout package. The bill will amend the U.S. Tax Code to permit employers to reimburse employees, tax free, for expenses related to bike commutes, including bike and equipment purchases, repairs, and storage if the bicycle is used as part of the commuter's trip to work.
SVBC will help to encourage local employers to take advantage of this benefit for their employees. The IRS will be releasing specific information regarding the process of this benefit option in the future. However, the new system will go into effect for tax year 2009, so start saving those receipts in January!