Employees regularly using a non-motorized bicycle for a substantial (50% or greater) portion of travel between the employee’s residence and the workplace can receive assistance defraying some of the costs a bike commuter may incur. These costs may include the purchase of a commuter bicycle, commuting gear (helmet, gloves), bike lock, bike parking/storage, bike upgrades (lights, racks), repairs and general maintenance. These are considered reasonable expenses as long as the bicycle and equipment is regularly used for travel between the employee’s residence and place of employment.
The benefit up to $20 per month will be distributed in a method chosen by the employer, but options include payroll additions, reimbursement checks or checks to bike shops.
Employees applying for the bicycle commuter subsidy are ineligible for other transportation benefits (transportation in a commuter highway vehicle, transit pass or qualified parking benefits) during the months they receive funds for bicycle commuting. (BikeLeague.org)
This is a financial benefit to employees, but also works as a way for employers to recognize positive choices made by employees and to show that the business is bicycle (and environmentally) friendly. Additionally, the contribution is not subject to federal income taxes, but may be subject to state taxes.
Challenge Participants Currently Adopting This Practice
- A Better City
- Blue Cross Blue Shield of Massachusetts
- Foley Hoag LLP
- Jamestown Properties LP
- TD Garden
- Tsoi Kobus & Associates
Financing Options, Incentives, And Rebates
- The League of American Bicyclists
- Commuter Check – commuter benefit provider
- Qualified Transportation Fringe Benefits Table – National Center for Transit Research
- Boston Bikes
In The News
- “How Biking Improves Employee Productivity” (Triple Pundit, 20 Aug 2013)