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New bicycle commuter benefit available As of January 1, employers have a new mechanism to support bicycle commuting by their employees. As part of the economic legislation signed by President Bush in October 2008, a bicycle commuter benefit was added to Internal Revenue Code section 132 (f) which will allow employers to reimburse employees who commute to work by bicycle for certain bicycle expenses. The IRS has not issued guidance on this benefit as of yet, however, the legislation states that an employer may reimburse a maximum of $20 per month for each month to an employee who:
Unlike other qualified transportation fringe benefits, such as a transit pass or qualified parking benefits, employees are not paying for this benefit through pre-tax compensation. The bicycle benefit would be funded solely with employer contributions. If you would like more information on this benefit and how iCommute can assist by logging your bicycle commute trips, call 511 and say RideLink. Project Manager Thomas Bruccoleri, Senior Regional Planner
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