Thursday, October 2, 2008

Bike Tax Credit in Bailout Bill

It seems as if you can get credit for up to $240 for expenses occurred while commuting on your bicycle. This is a portion of the bailout plan that the Senate passed so its still up in the air, but its interesting.
(i) QUALIFIED BICYCLE COMMUTING REIMBURSEMENT- The term `qualified bicycle commuting reimbursement’ means, with respect to any calendar year, any employer reimbursement during the 15-month period beginning with the first day of such calendar year for reasonable expenses incurred by the employee during such calendar year for the purchase of a bicycle and bicycle improvements, repair, and storage, if such bicycle is regularly used for travel between the employee’s residence and place of employment.

`(ii) APPLICABLE ANNUAL LIMITATION- The term `applicable annual limitation’ means, with respect to any employee for any calendar year, the product of $20 multiplied by the number of qualified bicycle commuting months during such year.

4 comments:

Anonymous said...

Well the government already gives motorists FREEways.

Steve said...

If I understand this correctly, what it actually means is that *if* your company is willing to reimburse you for your bike commuting costs, the company can then take a tax credit for them. Not bad, but not quite as nice as a credit you can claim on your own.

Anonymous said...

Another good thing the senate passed...
http://online.wsj.com/article/SB122298615110699903.html?mod=googlenews_wsj

Pantograph Trolleypole said...

That's true Steve. But I guess we can claim its a start.