After seven years of legislative proposals, the bicycle commuter tax benefit has finally passed both the U.S. House and Senate. President Bush signed the bill into law on October 3. This legislation allows employers to give employees who commute by bike a monthly tax-free stipend of $20 or less. This benefit is modeled after the federal vanpool and transit commuter tax benefit.

We are grateful to Congressman Earl Blumenauer (OR) and other members of Congress who have worked tirelessly to advance this legislation, as well as all the devoted bicycle advocates who helped promote it.

Employers may begin reimbursing employees tax-free on January 1, 2009.