Friday, January 16, 2009
King of Prussia BID
On January 1, 2009, qualified transportation fringe benefits [Section 132(f)] expanded to allow up to $20 per month for bicycle commuters. The Bicycle Commuter Act has been in front of Congress for seven years; it’s a simple, equitable provision that puts cyclists on the same footing as people who get tax breaks for taking transit or driving (or parking, actually) their cars to and from work. The total anticipated cost of the provision, estimated by the Joint Committee on Taxation, is a very modest $1 million per year, as compared to the $4.4 billion annual cost of parking and transit benefits. The bike provision was part of a larger Renewable Energy Tax Credit Initiatives legislation. Varying versions had passed both the House and Senate but the two houses were unable to compromise on one version.
Under the Bicycle Commuter Tax Benefit, employees who bike regularly to work, which is about10 times a month, are eligible to receive $20 per month reimbursement. The IRS has not developed a formal policy for how companies should implement this benefit; such as employees providing receipts for expenses or a voucher being distributed each month, but GVF Transportation can assist with this. GVF Transportation is a not-for-profit membership organization that creates public-private partnership to bring people together and work on reducing congestion, enhancing mobility and promoting commuting alternatives.
Unfortunately, the language precludes from combining both a transit pass benefit and a bicycle commuting benefit. GVF Transportation is working closely with the League of American Bicyclist and the Federal government to rectify this for the next surface transportation reauthorization in regards to expanding access to transit.
Accor Services USA is a commuter benefit solutions that promotes the use of public transportation by providing convenient ways for employers to provide pre-tax deductions or subsidies for employee commuting expenses. Accor will have a product specifically for bicyclists called the Commuter Check for Bicycling voucher. The voucher will be available for customer’s nationwide beginning in March, exclusively through their on-line ordering platform at http://www.commutercheck.com/. The vouchers will be valid for 13 months and will have the same security features as our transit vouchers. These vouchers will be able to be used for the purchase of bicycles, bicycle accessories, maintenance, and storage. A bicycle accessory includes pumps, locks, racks, lights, and safety gear but do not include clothing and food products such as energy bars.
Under the Bicycle Commuter Tax Benefit, employees who bike regularly to work, which is about10 times a month, are eligible to receive $20 per month reimbursement. The IRS has not developed a formal policy for how companies should implement this benefit; such as employees providing receipts for expenses or a voucher being distributed each month, but GVF Transportation can assist with this. GVF Transportation is a not-for-profit membership organization that creates public-private partnership to bring people together and work on reducing congestion, enhancing mobility and promoting commuting alternatives.
Unfortunately, the language precludes from combining both a transit pass benefit and a bicycle commuting benefit. GVF Transportation is working closely with the League of American Bicyclist and the Federal government to rectify this for the next surface transportation reauthorization in regards to expanding access to transit.
Accor Services USA is a commuter benefit solutions that promotes the use of public transportation by providing convenient ways for employers to provide pre-tax deductions or subsidies for employee commuting expenses. Accor will have a product specifically for bicyclists called the Commuter Check for Bicycling voucher. The voucher will be available for customer’s nationwide beginning in March, exclusively through their on-line ordering platform at http://www.commutercheck.com/. The vouchers will be valid for 13 months and will have the same security features as our transit vouchers. These vouchers will be able to be used for the purchase of bicycles, bicycle accessories, maintenance, and storage. A bicycle accessory includes pumps, locks, racks, lights, and safety gear but do not include clothing and food products such as energy bars.
Contact GVF Transportation today at 610-354-8899, for more information on how to implement the Bicycle Commuter Benefit or other commuting alternatives at your business.
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