Federal Qualified Bicycle Commuter Benefit

In 2009, the IRS approved a change in the tax code to allow employers to reimburse the costs of some biking expenses for employees.  Participation in this program for employers is completely voluntary.  Unlike the Qualified Transportation Benefit, this is not a pre-tax deduction for employees, but rather a direct payment by the employer.

Any employee in the U.S. who bikes to or from work for the majority of their work week is eligible.  Employees can receive up to $240/year or $20/month for bicycle expenses. Employees who take advantage of this program cannot receive the qualified transportation benefit in the same month.

Reasonable qualifying expenses can include:

  • Locks
  • Storage facilities
  • Shower facilities
  • General Bike Maintenance and repair
  • Bikes
  • Bike accessories or parts such as: lights, tires, gloves, etc. 

 

Employers currently offering the bicycle commuter benefit:

 

How to Administer:

 

Why Employers should participate?

Employers who support bike commuters can lower employee stress, improve employee health, decrease employee sick days, lower health insurance premiums, and save on parking costs.