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Bike to work, get a tax credit
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If you haven't already noticed from the theme of my last few articles, the American Recovery and Reinvestment Tax Act of 2009 or the "Stimulus Bill" is chock full of lots of little and not so widely publicized tax credits that you should be aware of but are buried in the thousands of pages of legalese.
The Stimulus Bill included a provision that allows employers to provide their employees with a $20 fringe benefit per month for the purchase of a bicycle and any bicycle repairs, improvements or storage costs. Not a bad incentive and do we really need to mention the additional health benefits and carbon footprint benefits that will be achieved if you ride your bike to work. How about a big thank you from all the people stuck on 695 in morning rush hour traffic that may get to work a few minutes earlier because one less car is off the road. The benefits are endless.
For employees who regularly commute to work by bicycle, employers may offset the costs of bicycle purchase, improvement, repair, and storage at the rate of $20 per month. Based on how the employer chooses to offer the benefits, the employee may bring receipts to be reimbursed, may sign up for regular monthly payments or devise some sort of voucher system with their employer.
Bike commuters are not allowed to receive transit or parking benefits in addition to the bike benefit.
The bike commuter benefit can be provided by employers beginning January 1, 2009.
Here's a few links you might like to check out...
One Less Car - bicycle and alternative transportaion advocate in Maryland
WABA - the Washington Area Bicyclist Association
If you liked this stimulus bill article you may also find the following of interest...
New qualified expenses for qualified tuition programs - 529 Plans
First time homebuyer credit is hot this spring selling season
Tom Taylor, CPA is a fee-only, independent Financial Planner and Certified Public Accountant and can be contacted at Thoma Capital Management or Taylor & Company in Towson, MD. He is a member of NAPFA and the MACPA and AICPA.
