Saturday, March 21, 2009

CREDIT: Posted by Joseph Rose, The Oregonian March 11, 2009

It's time for the weekly commuter question.

This week's query comes via voice mail from a bicycle commuter named Josh:

"I've heard about the new Bicycle Commuter Tax Credit from the federal government. I understand that I can get up to $20 a month for commuting by bike. But how does it work? Does it show up on my paycheck? Where do I sign up for it?"

Yes, indeedy, as of Jan. 1, the Bicycle Commuter Act, passed last fall as part of the $700 billion federal credit crisis bailout, provides a $20 monthly credit for every employee of a company who regularly bikes to work.

The idea is actually something that our very own U.S. Rep. Earl Blumenauer has been pushing for years. The Ways and Means Committee inserted the plan into the bailout bill.

Ironically, Blumenauer wound up voting against his own proposal because he opposed what he saw as a bloated corporate bailout.

Tyler Frisbee, one of Blumenauer's legislative aides, said the first step toward getting the bike credit is huffing it to your company's human resources department. Most businesses are implementing the credit through a work benefits company, she said.

The money is supposed to be passed on to bike commuters to help pay for maintenance or buying a new bike. For details, Frisbee recommends visiting the League of American Bicyclists' website.

"Everyone is at different stages," Frisbee said. "Commuters have brought in receipts to companies to get reimbursed $20 in bike tires. Other companies have been giving out Visa Bucks cards to commuters that can only be used at bike shops."

At the same time, she said, some businesses are still trying to figure out how to implement the credit.

While the bike-credit plan is not a federal mandate, the money given to cyclists is deducted from the company's corporate tax bill. Here's the actual text of the law.

At the same time, Blumenauer and his staff are working on a sequel. The Multi-modal Commuter Transport Act, also know as House Bill 863, would allow commuters who go by both bike and public transit to get up to $115 a month, Frisbee said.

In addition to the $20 bike credit, there is currently a $115 federal public transit credit and a $115 parking credit. Under the current law, you have to choose one or the other, and many cyclists are going with the higher credit for transit, she said.

"A lot of people do a combination of things to get to work," Frisbee said, "like biking to the MAX line and then taking the MAX. Or doing part part bike and part bus."

Under the new proposal, bike commuters who use transit for parts of their commutes can get up to $90 a month for bus and train costs and $25 for bike commuting, Frisbee said.

She said the proposal also includes technical changes making it easier for companies to to put the credits to work.