Wednesday, October 15, 2008

Commuter bicycle act

One positive thing that came out of the bailout was the Bicycle Commuter Act.

You can now deduct $20/month for biking to work! The text of the law is here.

(i) QUALIFIED BICYCLE COMMUTING REIMBURSEMENT- The term `qualified bicycle commuting reimbursement' means, with respect to any calendar year, any employer reimbursement during the 15-month period beginning with the first day of such calendar year for reasonable expenses incurred by the employee during such calendar year for the purchase of a bicycle and bicycle improvements, repair, and storage, if such bicycle is regularly used for travel between the employee's residence and place of employment.

`(ii) APPLICABLE ANNUAL LIMITATION- The term `applicable annual limitation' means, with respect to any employee for any calendar year, the product of $20 multiplied by the number of qualified bicycle commuting months during such year.

`(iii) QUALIFIED BICYCLE COMMUTING MONTH- The term `qualified bicycle commuting month' means, with respect to any employee, any month during which such employee--

`(I) regularly uses the bicycle for a substantial portion of the travel between the employee's residence and place of employment, and

`(II) does not receive any benefit described in subparagraph (A), (B), or (C) of paragraph (1).'.

(d) Constructive Receipt of Benefit- Paragraph (4) of section 132(f) is amended by inserting `(other than a qualified bicycle commuting reimbursement)' after `qualified transportation fringe'.

(e) Effective Date- The amendments made by this section shall apply to taxable years beginning after December 31, 2008.

Also, the President is planning to open the National Parks to mountain biking. Under the new rule, which is proposed before Nov 15 so it can be enacted before Bush leaves office, park superintendents will have the latitude to open areas for mountain biking much more quickly than the current process, which requires formal public notice.

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