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Tax benefits for commuter cyclists
There’s a wee bit of good news for bicyclists among all the doom and gloom surrounding the economy these days.
This from an article by Rachel Gordon from the San Francisco Chronicle:
“The bailout bill crafted by Congress and the White House to stop the tailspin of the nation’s financial sector also includes federal tax benefits for people who commute by bicycle.
Starting in January, workers who use two-wheelers as their primary transportation mode to get to and from work will be eligible for a $20-a-month, tax-free reimbursement from their employers for bicycle-related expenses. In return, employers will be able to deduct the expense from their federal taxes.”
No kidding!
While it won’t exactly put a ton of cash in your pocket, it at least legitimizes to a certain degree commuting to work by bike.
Here’s more from the article:
“Bike advocates had been trying for seven years to get such a provision passed, but came up short until Congress rushed through the Wall Street bailout package last week and lawmakers squeezed in pet projects. The bicycle benefit was championed by members of the Oregon delegation on Capitol Hill.
Backers estimate that the federal tax rolls may lose out on about $1 million a year due to the new employer write-off, according to the advocacy group League of American Bicyclists.”
What do you think?
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