Oregon Public Broadcasting

On January 1st, people who bike to work will be able to get a $20-a-month benefit  -- if their employers decide to take part in a new federal tax program.  But, as Kristian Foden-Vencil reports, just how the bill is going to be implemented is far from clear.

For example, how many times a month does someone have to cycle into work to get the benefit – twice a week? Three months a year during the summer?  Or will they have to submit receipts to prove they bought a bike or new tires?

Karl Rohde of the Bicycle Transportation Alliance says human resource departments are guessing, but....

Karl Rohde: “I think the IRS is going to have to figure out how they’re going to handle this benefit. But we’re excited about the fact that it does recognize that bicycling is a legitimate form of transportation to and from work.”

The bill says any employee who quote: “regularly uses” a bike for a “substantial portion of their travel” is eligible.

But you don’t claim the benefit on your own tax form, because it goes through your employer.

Non-profit workers are also out of luck – because their employers are tax-exempt.