Tuesday, January 5, 2010

Is saving money one of your new year's resolutions?

Let Retro City Cycles help you put more money in your wallet each month!

Remember that Renewable Energy Tax legislation that passed a few months ago? Hidden deep within the legalese jargon is a nifty little tax credit for commuters who bike to work.

The Bicycle Commuter Act
The unnoticed tax credit was called the Bicycle Commuter Act. It was penned by Oregonian Congressman Earl Blumenauer. The aim of the bill was to give bicycle commuters a tax break similar to the ones that other commuters are eligible for.

What the Bicycle Commuter Act Offers
The credits breakdown like this:
For employees who regularly commute to work by bicycle, employers may offset the costs of bicycle purchase, improvement, repair, and storage at the rate of $20 per month. Based on how the employer chooses to offer the benefits, the employee may bring receipts to be reimbursed, may sign up for regular monthly payments, or devise some sort of voucher system with their employer.

Bike commuters are not allowed to receive transit or parking benefits in addition to the bike benefit.

Who Provides This Benefit For You?
The discount comes through your employers who probably contract a commuter benefit provider. Accor Services is one such provider. Speak to your company's liaison to the benefit provider about receiving your bicycling commuter credits. Your employers may elect not to provide these benefits. It would be wise for your employers to do so. They can save about 9.5% of their FICA contributions by participating in a commuter program.

What Do You Have Do as A Commuter?
Obviously, you have to ride a bike to work. You don’t have to ride it everyday, but you do have to commute by bike at least three times a week.

If you already bike to work, it's like a free twenty bucks. (I smell a pizza party.) Otherwise, it's just one more good reason to do so.

Get your company on board with the Bicycle Commuter Act, and Retro City Cycles will offer discounts on tune-ups and accessories to everyone you work with!