[Via BikingBis.com]
After news broke about the passage of the bike commuter tax provision in the recent financial bailout bill, many commenters had questions about how it would work.
To help answer those questions, the League of American Bicyclists has published a list of Frequently Asked Questions. I’ve pasted excerpts from each question below:
When does the bill become effective?
Effective Date –Tax year beginning January 1, 2009
I am a bicycle commuter: how and where do I apply?
…the bicycle commuter provision is a fringe benefit, so your employer will still have to set up a process to administer the benefit that works for your organization.
How does the program work?
The original intent was that an employer could now provide up to $20 a month in incentives related to an employee’s bike commuting, to include, but not limited to, bike parking facilities, shower facilities, and maintenance then deduct that amount from their taxable income…
Why was the bicycle commuter act part of the financial rescue package?
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.
The Senate strategically attached a number of provisions to the Financial Rescue Package to ensure their passage before recess…
If I put my bike on a bus/train for part of my commute, can I still get the benefit?
At this time, the language would preclude one from obtaining both a transit pass benefit and a bicycle commuting benefit…
Who made this happen?
Congressman Earl Blumenauer (D-OR) and Senator Ron Wyden (D-OR)…
See the full answers at BikeLeague.org.