Bike Commuters Get New Pre-Tax Benefits March 02, 2009 Benefits program delivers new solution for tax-free bicycle benefit
This month, Commuter Check for Bicycling is being added to the repertoire of industry-leading Commuter Check Benefit Solutions programs from benefit programs provider Accor Services USA.
The new solution supports the expansion of the Qualified Transportation Fringe Benefit (IRS Tax Code Section 132(f)) to allow bicycle commuters to designate pre-tax salary deductions of up to $240 per year. Individuals can now designate up to $20.00 per month as a pre-tax salary deduction to pay for the cost of commuting via bicycle. This includes the cost of bicycles, bicycling equipment and accessories and storage unit costs.
Similar to current Commuter Check programs for public transit and parking, employers can offer the bicycling benefit as a pre-tax salary deduction, saving on taxes for the individual and the company or as a subsidy, which is also tax deductible for the company.
"As an organization whose mission is to promote bicycling, we are pleased to see bicycling commute expenses now officially recognized as a commuting expense that qualifies for the transportation fringe benefit," says League of American Bicyclists Advocacy Director Walter P. Finch. "Further, we are thrilled that a leader in commuter benefits and the only national commuter benefits provider, Commuter Check, was first to step up to the plate to offer a program to enable employers and their employees to take advantage of the benefit."
Commuter Check for Bicycling vouchers are valid for all IRS allowable purchases using the bicycle benefit including new bicycle purchases, bicycle parts, equipment and accessories, as well as bicycle storage costs. Vouchers are redeemable at a number of dedicated bicycle shops and bicycle parking and storage locations across the country.
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