Bicycle commuters eligible for checks from employers

Ingrid Stegemoeller, Herald staff writer

Amid the hundreds of pages in the federal bill bailing out financial institutions were a few dedicated to people who commute to work on two wheels.

Bicycle commuters are now eligible for a $20-a-month tax-free reimbursement from their employers to pay for bike-related expenses, thanks to the Economic Stabilization Act of 2008.

And while $20 a month might seem small, those in the bicycling industry say it's a good start.

"It legitimizes bicycle commuting right up there with transit and driving your car to work," said Gary MacFadden, senior program director for the National Center for Bicycling & Walking.

Jerry Markee, owner of Markee's Cycling Centers in Kennewick and Richland, agreed.

"I think that anything they can do to promote cycling as a viable form of transportation (is positive)," he said. "A vast majority of Americans don't view a bicycle as a viable means of transportation and it is."

Mike Hoard, 44, works at the Richland Markee's location and rides the three miles to work a majority of the time when the weather is decent.

"I have a passion for cycling," the Richland man said. "I'm trying to keep my health up. When gas prices were up, you could save a little money here and there."

Hoard didn't know about the reimbursement, but Markee said he plans to implement it for his employees.

In most cases it's likely going to be up to employees to ask their bosses about the reimbursement, MacFadden said.

Employers will determine what constitutes "regular" bicycle commuting and they have a couple of options in setting up the voluntary program.

The $20 could be a pre-tax benefit that shows up on a worker's paycheck, or an employer could pay the bike commuter $20 and take that expense off federal taxes, MacFadden said.

Essentially, businesses won't be taxed on that $20, he said.

"I think there is some disappointment from the people who were pushing this bill that it came down to $20 per month," MacFadden said. "In the future we'd like to see this adopted more around the country and a push for a higher benefit program."

Benefits already are available for commuters who use mass transit or who pay for parking, at $115 and $210 per month, respectively.

The yearly cost of the Bicycle Commuter Act is expected to be about $1 million, according to the House-Senate Joint Committee on Taxation.

But tax credits aren't the right way to go about making policy, said Pete Sepp, vice president for communications of the National Taxpayers Union. Rather, the emphasis should be on reducing tax rates, he said.

"It's hard to envision such a thing suddenly inducing millions of people getting on bicycles and pedaling to work," Sepp said. "This is more of a reward for people who are already riding" and the latest attempt to try to change people's behavior.

Markee said he's not sure the money will be enough of an incentive to make a big difference.

"They've got to do something to give employers an incentive to have showers," he said.

Getting cleaned up for work after the commute is a roadblock for many, Hoard said.

"You've got to worry about 100 more things than you would if you were driving your car," he said. "It can be considered an inconvenience, but if you start making it part of your routine, it's fun and enjoyable."

And an extra $20 offers a little boost on regular maintenance and gear, bicyclists said.

"I don't think it's enough money to change the culture but maybe it will create interest," Markee said. "It may be an incentive just to put it on the map."

For more information about the reimbursement, go to www.bikeleague.org.

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Monday, Jan. 12, 2009

Bicycle commuters eligible for checks from employers

Ingrid Stegemoeller, Herald staff writer