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Here's Some Good News for Biking...
Finally, cyclists will get more fair and equal treatment from the IRS.
While October's emergency relief/bail-out bill may not be popular, there is a provision included that is favorable to cyclists. The legislation includes a proposal to provide some modest tax relief for those who use their bike to commute to work.
What's it all about? For years, motorists have benefited from a tax break if they were fortunate enough to have their employer provide fringe benefit for car
parking, car mileage reimbursement or free bus passes. While it's not cash, the perk is certainly a benefit for the motoring employee, but the IRS agrees not to treat the fringe benefit as income, on which the employee should pay taxes. As a result, the employer reduces his income, on which they pay taxes, and makes an employee happy in a way that |
Are you an employer or social group, interested in hosting a cycling education activity? You can help your employees enjoy the healthy activity of bike riding and may be able to reduce your health insurance costs.
Contact us at:
info@ClevelandBikes.org
for more information |
doesn't require more employer spending for retirement funds, Social Security or health insurance. The employee gets a little "free' money.
So what's wrong? Unfortunately, there is no analogous benefit for cyclists recognized by the IRS and with more cyclists riding to work, with gas prices where they are, that's not fair or good for the country.
What are the Details? This new legislation will allow employer-provided transportation fringe benefits to be considered tax-free income for bicycle commuters. The provision will encourage more cycling for transportation, treat cyclists fairly, address transportation priorities by reducing fuel demand, traffic pollution and congestion, while promoting good health.
Beginning on New year's Eve 2008, an employer can provide up to $20/month for reasonable expenses for purchase, repair, improvement and storage, if the bike is regularly used for a substantial portion of travel in commuting to work. |
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Further, employer-provided incentives for cycling may also reduce employer health insurance costs, by offering support for healthy activities. This IRS change is fundamentally sound tax policy because it puts employer subsidies for bicycle commuting on essentially the same tax footing as existing subsidies for employees who drive or use public transit.
Studies show:
- As cities and employers increase their support for cyclists, cycling increases, with all the energy, health, traffic congestion reductions and environmental benefits that go with it.
- As the number of cyclists increase, motorists become more alert to the presence of cyclists in the road and safety increases (as cycling in London increased 100%, 2000-2005, the cyclist accident rate fell 40%; Transport for London, quoted in the Wall Street Journal, 5/19/06
- The Census reports that Ohio is the third leading state for commuting in single-occupied vehicles
- More than half of Americans want to bicycle more and drive less, yet transportation officials have not translated the public goals to public support. This change represents a modest change to help cyclists and those who are interesting in learning about biking to work.
So What Is ClevelandBikes Doing to Help?
- Developing a Bike Station, offering showers, lockers and secure 24/7 bike parking, for Downtown Cleveland and other Cleveland neighborhoods. Click here to see the planned site at the Gateway neighborhood and current architectural drawings.
- Teaching safe cycling at your school, worksite, social or neighborhood grou, connecting you to certified safety instructors, certified by the national nonprofit organization, League of American Bicyclists, a group that has been working on cycling, safety and transportation since before there were cars, through their "good roads" movement.
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The emergency bill may not be the most popular law in the land,but this is one provision that is good news for cyclists and good news for the nation. ClevelandBikes was pleased to urge Ohio congressional leaders to support the bills when they were first introduced earlier this year and are pleased they have been enacted into law. Enjoy the ride!
ClevelandBikes :
When ClevelandBikes, Cleveland Benefits! |
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