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Employers, Workers Could Benefit From New Program

Fringe Benefit Program Begins January

Updated: 9:15 pm CDT October 9, 2008

The $700 billion bailout passed almost a week ago has some lesser known measures attached to it such as one that gives a tax break to bike commuters.

Starting Jan. 1, if people ride a bike instead of drive to work, their employer can opt in to the plan with the IRS to provide people up to $20 per month, pre-tax.

"It's a much lower costs than people driving or taking transit get, but of course riding a bike doesn't cost as much either, so everybody's winning, because it's also less impact on society for roads and congestion and air quality and things like that," said Robbie Webber.

The joint committee on taxation estimates the program has a very low cost - - relatively speaking -- just $1 million a year, compared to the $4.4 billion a year cost to provide parking and transit benefits, WISC-TV reported.

"I ride all year, even through the winter, I've been riding for 10 years," said Matt Logan. "First winter I was here, someone laughed at me thinking I'd be able to ride through the winter, but I've learned to deal with it."

Others are less committed but still excited about Congress' decision to extend fringe commuting benefits to bicyclists.

"In the past, if your employer offered a benefit, they could take out pre-tax costs for you to park in a garage, or to use a vanpool," said Webber,

But now, if a company signs up, commuters that bicycle could get $20 a month back.

"I think it's great, I think anything that's going to promote bicycle commuting is a step in the right direction," said Carin Bringleson.

The money could be used to take care of everything from a place to park or a new tube for their tire. The money can also go toward paying for bike gear, racks, day lockers, and showers, WISC-TV reported.

"Anything that would help me, to commute to work on my wheels would be very helpful," said Herrick.

Said Logan, "It's definitely a fairness issue to all of this, its kind of been a gripe that a lot of bicyclists has had."

One bicyclist feels that the bicycling has additional positive effects for both employers and employees alike.

"People who bike to work, take fewer sick days, they often are more productive, they feel better, and so it's good for everybody," said Webber.

For more information on the bicycle commuter tax provision, click here: Bicycle Commuter Tax Provision

To learn more about a local dedicated to making Madison a better place to bike, click here: Green Streets Madison.

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