We all know that riding a bike is good for the environment, our health, and our pocketbooks, but here’s one more way it pays to bike – The Bicycle Commuter Tax Benefit. You can get paid to bike to work.
Well, hop in the saddle because that is what many sustainable businesses across the nation are doing – becoming bike friendly businesses and paying their employees to commute by bicycle. More than 500,000 American employees now work at a Bicycle Friendly Business (BFB), thanks to visionary leadership in the private and public sector. Just recently, the League of American Bicyclist announced 67 new Bike Friendly Businesses, who joined the ranks of the 412 local businesses, government agencies and Fortune 500 companies that are transforming the American workplace.
“These leaders are at the forefront of a movement to make American businesses more competitive, sustainable and attractive to the best and brightest employees,” said Andy Clarke, president of the League of American Bicyclists. “An investment in bicycling enhances employee health, increases sustainability and improves the bottom line.”
Your two wheels are recognized by the IRS as a “qualified transportation fringe benefit” More specifically, the Bicycle Commuter Tax Benefit has been on the books of the Internal Revenue Service for the past three years, but it still goes quite under used. Any employer, if they chose to do so, may provide a reimbursement of up to $20 per month for bike-related expenses incurred by the employee. That’s an extra $20 in your paycheck. Explained in our eco friendly consulting, that things like spare tubes, bar tape, riding gloves, eye wear, cycling clothes, commuter bags, rain gear, lights, gloves, helmet, cost of maintenance, even the cost of a new commuter bike, basically anything you can purchase at a bike shop qualifies for reimbursement. One point of discinction: this is a benefit offered by your employer, not something you can claim on your personal taxes.
What are the benefits of bike commuting programs for businesses? Aside from being part of a sustainable business strategy, there are countless benefits to employers in adopting a bike commuting program:
- Increase worker productivity: Fit employees are more alert, more productive, perform better and more efficiently.
- Improve employee health.
- Lower health care costs: healthier employees can reduce health insurance costs.
- Reduce parking cost.
- Reduced carbon emissions.
- Reduce turnover: Employers who appreciate workers' personal needs have less employee turnover.
- Supporting bike commuting is less expensive than an in-office fitness facility.
- Improve work/ life balance: Bike commuting can be substituted for the gym, saving employee’s personal time.
- Community engagement: Bicycles can be produced and maintained locally by local bike shops contributing to local job opportunities as part of a sustainable economy.
- Improve company image.
- Expand eco awareness within the organization and community.
- Link wellness programs with the corporate sustainability plan.
Becoming a bike friendly office is easy. Click here for a list of frequently asked questions on the benefit. To learn more about green cycling and sustainability, visit us at Taiga Company.
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