Press Release - Bike Commuters Get Flexible Spending Account

30 Oct 2008

by: Aaron Fodge, SmartTrips and Public Process Manager

Bike Commuters Get Flexible Spending Account  

Bicycle Commuters Qualify for $20.00 per Month  

Fort Collins, Colorado—The Emergency Economic Stabilization Act of 2008 : H.R. 1424  (bailout) bill signed into law by President Bush includes expanding qualified transportation fringe benefits (Section 132(f) ) to allow up to $20.00 per month for bicycle commuters. 

For most employees, those who ride transit or commuter highway vehicles (e.g., vanpool) can receive up to $120.00 per month tax free.  They can also receive $220.00 per month tax free for qualified parking.

The bicycle benefit takes effect in January 2009 for reasonable expenses incurred by the employee during the calendar year for the purchase of a bicycle and bicycle improvements, repair, and storage. Employees that bicycle regularly for travel between the employee's residence and place of employment may contribute $20 multiplied by the number of qualified bicycle commuting months during such year. 

If the employee elects to contribute to the bicycle benefit, they will not be eligible to contribute to the transit or commuter highway vehicle benefit. You can find the full bill (HR 1424) at http://thomas.loc.gov/.  See IRS' Taxable Fringe Benefit Guide http://www.irs.gov/pub/irs-tege/fringe_benefit_fslg.pdf  For more information about Qualified Transportation Fringe Benefits (Section 132(f)).

For more information, please contact Aaron Fodge at 970-224-6162 or afodge@nfrmpo.org or Dave "DK" Kemp, FC Bikes Coordinator at 970.416.2411 or dk@fcgov.com.