Pedaling pays off
published on Tuesday, January 6, 2009 9:11 PM MST
By JESSICA MAYRER Chronicle staff writer
Beginning Jan. 1, employees who regularly use bicycles to get to and from work are eligible for a $20-a-month, tax-free reimbursement from the federal government through their employers for bicycle-related expenses.
ERIK PETERSEN/CHRONICLE Stewart Mitchell, owner of Mitchell Construction, often rides his bike with a trailer full of tools to work. Beginning Jan. 1, employees who regularly use bikes to get to and from work are eligible for a $20-a-month, tax-free reimbursement from the federal government through their employers. “I think it’s a good first start,” said Gary MacFadden from the National Center for Biking and Walking. “We’re just trying to get the word out more.”
Employers can now deduct $20-per-employee from federal tax filings for every staff member who commutes to work regularly on a bicycle. In turn, each employee will be eligible for a $20-per-month credit on their paycheck.
Employees working for companies on board with the credit could reap an additional $240-per-year to pay for bicycle-related expenses, like new tires, chains and basic maintenance.
The Bicycle Commuter Act was included the $700 billion bailout package approved by Congress in October. It extends transportation benefits already in place for employers that set up car pools and other traffic-reducing measures.
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But people are still getting wind of the new credit, and so, employees will likely have to pitch the program before it catches on, MacFadden said.
“I think this is going to take the commuter being aware of this,” MacFadden said.
It’s easy to rack up bicycle maintenance bills, MacFadden said. A new tire alone runs as much as $30. “It can go well over the $20 per month.”
A basic bicycle tune-up at Summit Bike & Ski runs $59. And so, while it’s debatable whether the credit will lure folks onto two wheels, it will cover a chunk of basic yearly maintenance costs, said Steve Apple from Summit .
Business at Summit has risen steadily during the past three years, Apple said. And while every incentive helps, he’s unsure whether the credit will get more people on bikes.
“People are already beginning to think differently about the way they get around,” Apple said. “I see biking continuing to grow, regardless of a tax break.”
Even so, the credit is a good start toward getting people out of their cars and onto bicycles, MacFadden said. And in communities like Bozeman that lean toward healthy commuting options already, the program will likely spread, he said. “I think the communities are going to jump on this,” he said. “This is a program that doesn’t cost them anything.”
But it could take a little time for folks to catch on.
“The program sounds like a great opportunity,” said Sally Beitman, from Zoot Enterprises, which provides technological assistance to the national banking industry and employs 245 people. “We look forward to looking into it further.”
Even though “Zooters” must navigate major thoroughfares like Jackrabbit and Huffine lanes to get to work, a few employees already bike to work consistently, she said.
“We do, surprisingly, have quite a few people who bike ride,” she said.
As folks become increasingly aware of environmental challenges associated with automobiles and the benefits of bicycle riding, they will continue to look toward two-wheeled options, with or without a tax incentive, Apple said.
“Twenty dollars or not, it’s a really fun way to get around,” he said.
