It seems like the cost of everything is going up– food, gas– well everything.  But I came across something that just might take the sting out of filling up at the pump — ride your bike to work.  Recently I heard that Boston has implemented a system of bike paths for commuting bike riders.  What a great idea.  But for those of us who don’t live in Boston there is still a great opportunity to save gas and the environment and make a little money too.
There was a law enacted back in 2008 called the Bicycle Commuter Act that states that commuters who use their bikes to get back and forth to work can receive $20 a month from their employer. According to the law employers can reimburse employees–tax free–for reasonable expenses relating to their bike commute like equipment or repairs.  This provision is for those who use their bike and don’t receive any other commuter tax-free benefit.  Yes, there are other benefits for those who car pool or van pool.
The provision is a lesser-known part of a larger Renewable Energy Tax Credit Initiatives legislation that will give cyclists a tax break only if they don’t receive another tax free fringe benefit.
Here’s how it works:
Your employer would reimburse you $240 a year (as long as you don’t get a transit pass, qualified parking or other transportation benefit) then you an exclude up to $240 from your gross income.  Tax free for the employer and taken right off the top for the employee.
If you don’t have a bike or don’t live close enough to ride your bike to work there are other benefits for carpooling or van pooling that could amount to $115 a month.
For more information check out the website  www.bikewalk.org/bca.php
Have experience with this or know more about it?  Feel free to share.