The Bicycle Commuter Act: What it Means for You and Your Company

Now that the bicycle commuter provision is law, the League of American Bicyclists is taking the lead to ensure that implementation guidelines are established prior to the provision's effective date of January 1, 2009. To date, the Bicycle Commuter Act allows employers to offer a fringe benefit of $20 per month for employees to purchase a bicycle, as well as bicycle improvements, repairs or storage costs.

How the Legislation Works:

* For employees who regularly bike to work, employers may offer a $20 monthly ($240/year ) tax-free benefit.

* The employer is responsible for implementing their own system of distributing the funds to the employee. For example, the company may choose to have their employees bring in receipts to be reimbursed, they can have employees sign up for monthly payments, or implement a voucher system.

*NOTE: Bike commuters are NOT eligible to receive transit or parking benefits in addition to the biking benefit.

A complete overview of the Bicycle Commuter Act can be found here and a list of Frequently Asked Questions can be found on the League of American Bicyclists’ Web site.
GVF Transportation will be glad to assist your company with implementing this benefit for bike commuters, and find the best and easiest way to ensure that bicyclists receive their monthly benefit. Contact Maureen Farrell or Carissa Pleiss for more information.