If getting out to NAHBS sounds cool, but makes your wallet hurt, clear your weekend schedule.  The Rocky Mountain Bicycle Show is taking place over in Boulder.  Many of our local bike builders will be on hand, and so far, it looks like Black Sheep, Tiemeyer, Moots, Nobilette, True Temper, Edge Composites and others will be there showing off their newest wares.

Also, there is some sort of cross race that is concurrent with the show, and those are always a blast to watch.  Make sure to assist the riders financially with frequent “dollar premes” to really get enmeshed in the action.

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The New York Times today took a cue from BikeDenver in pointing out the irony and circumstances surrounding passage of the Bike Commuter Act as part of the Economic Recovery Act.  It goes into more detail on why the Bike Commuter Act’s sponsor, Rep. Earl Blumenauer, ultimately voted against the package.  Read the full text here.

In the near future, BikeDenver will be providing information to local businesses, and materials which employees can take to their HR departments to explain how the benefit works and how you can take advantage of it.  Stay tuned for the details.

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A Reason To Go Out on the Second Thursday

The BikeDenver Board convenes on the second Thursday of each month to discuss business, make plans and update one another on progress.

Meetings are held in the Alliance Building at 1536 Wynkoop. Our meetings will be in the 2nd floor Conference Room. We’re hoping to stay in this location for a while, so feel free to memorize it!

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A Reason To Go Out on the Second Thursday

The BikeDenver Board convenes on the second Thursday of each month to discuss business, make plans and update one another on progress.

Meetings are held in the Alliance Building at 1536 Wynkoop. Our meetings will be in the 2nd floor Conference Room. We’re hoping to stay in this location for a while, so feel free to memorize it!

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Stop by the BikeDenver booth at the…

20th Annual Subaru Denver VeloSwap
Denver, Colorado
Saturday, October 25, 2008
National Western Complex
Time: 9:00 a.m. - 4:00 p.m.

More information or to buy tickets online, visit the the Veloswap Denver page.

“VeloSwap is the world’s largest consumer bicycle and sports expo. It is THE place to see, swap, buy, and sell every imaginable bike, part, and accessory.

“This cultural cycling happening is a not-to-be-missed experience. It is the place to feel the pulse of the cycling community and rub elbows with like minded cyclists.” (from Veloswap Denver homepage)

“VeloSwap is an important congregation of cyclists, not only for buying and selling, but for socializing” - quote from 2005 attendee

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A Reason To Go Out on the Second Thursday

The BikeDenver Board convenes on the second Thursday of each month to discuss business, make plans and update one another on progress.

Meetings are held in the Alliance Building at 1536 Wynkoop. Our meetings will be in the 2nd floor Conference Room. We’re hoping to stay in this location for a while, so feel free to memorize it!

Subscribe to the BikeDenver RSS feed

On Friday, the president signed the Emergency Economic Stabilization Act.  One clause in the Act amended the transportation fringe benefits in the US Tax Code to include an employer incentive for bike commuters.  Here is the pertinent section of the tax code in it’s entirety for all you policy wonk cyclists out there:

USC 26 §132 (f) as amended by the Emergency Economic Stabilization Act[1]

(f) Qualified transportation fringe

(1) In general

For purposes of this section, the term “qualified transportation fringe” means any of the following provided by an employer to an employee:

(A) Transportation in a commuter highway vehicle if such transportation is in connection with travel between the employee’s residence and place of employment.

(B) Any transit pass.

(C) Qualified parking.

(D) Any qualified bicycle commuting reimbursement

(2) Limitation on exclusion

The amount of the fringe benefits which are provided by an employer to any employee and which may be excluded from gross income under subsection (a)(5) shall not exceed—

(A) $115 per month in the case of the aggregate of the benefits described in subparagraphs (A) and (B) of paragraph (1),

(B) $215 per month in the case of qualified parking, and

(C) the applicable annual limitation in the case of any qualified bicycle commuting reimbursement.

(3) Cash reimbursements

For purposes of this subsection, the term “qualified transportation fringe” includes a cash reimbursement by an employer to an employee for a benefit described in paragraph (1). The preceding sentence shall apply to a cash reimbursement for any transit pass only if a voucher or similar item which may be exchanged only for a transit pass is not readily available for direct distribution by the employer to the employee.

(4) No constructive receipt

No amount shall be included in the gross income of an employee solely because the employee may choose between any qualified transportation fringe other than a qualified bicycle commuting reimbursement and compensation which would otherwise be includible in gross income of such employee.

(5) Definitions

For purposes of this subsection—

(A) Transit pass

The term “transit pass” means any pass, token, farecard, voucher, or similar item entitling a person to transportation (or transportation at a reduced price) if such transportation is—

(i) on mass transit facilities (whether or not publicly owned), or

(ii) provided by any person in the business of transporting persons for compensation or hire if such transportation is provided in a vehicle meeting the requirements of subparagraph (B)(i).

(B) Commuter highway vehicle

The term “commuter highway vehicle” means any highway vehicle—

(i) the seating capacity of which is at least 6 adults (not including the driver), and

(ii) at least 80 percent of the mileage use of which can reasonably be expected to be—

(I) for purposes of transporting employees in connection with travel between their residences and their place of employment, and

(II) on trips during which the number of employees transported for such purposes is at least 1/2 of the adult seating capacity of such vehicle (not including the driver).

(C) Qualified parking

The term “qualified parking” means parking provided to an employee on or near the business premises of the employer or on or near a location from which the employee commutes to work by transportation described in subparagraph (A), in a commuter highway vehicle, or by carpool. Such term shall not include any parking on or near property used by the employee for residential purposes.

(D) Transportation provided by employer

Transportation referred to in paragraph (1)(A) shall be considered to be provided by an employer if such transportation is furnished in a commuter highway vehicle operated by or for the employer.

(E) Employee

For purposes of this subsection, the term “employee” does not include an individual who is an employee within the meaning of section 401 (c)(1).

(F) Definitions related to bicycle commuting reimbursement

(i) Qualified bicycle commuting reimbursement. – The term ‘qualified bicycle commuting reimbursement means, with respect to any calendar year, any employer reimbursement during the 15-month period beginning with the first day of such calendar year for reasonable expenses incurred by the employee during such calendar year for the purchase of a bicycle and bicycle improvements, repair, and storage, if such bicycle is regularly used for travel between the employee’s residence and place of employment

(ii) Applicable annual limitation – The term ‘applicable annual limitation’ means, with respect to any employee for any calendar year, the product of $20 multiplied by the number of qualified bicycle commuting months during such year.

(iii) Qualified bicycle commuting month – the term ‘qualified bicycle commuting month’ means, with respect to any employee, any month during which such employee – “(I) Regularly uses the bicycle for a substantial portion of the travel between the employee’s residence and place of employment, and “(II) does not receive any benefit described in subparagraph (A), (B), or (C) of paragraph (1).”

(6) Inflation adjustment

(A) In general

In the case of any taxable year beginning in a calendar year after 1999, the dollar amounts contained in subparagraphs (A) and (B) of paragraph (2) shall be increased by an amount equal to—

(i) such dollar amount, multiplied by

(ii) the cost-of-living adjustment determined under section 1 (f)(3) for the calendar year in which the taxable year begins, by substituting “calendar year 1998” for “calendar year 1992”.

In the case of any taxable year beginning in a calendar year after 2002, clause (ii) shall be applied by substituting “calendar year 2001” for “calendar year 1998” for purposes of adjusting the dollar amount contained in paragraph (2)(A).

(B) Rounding

If any increase determined under subparagraph (A) is not a multiple of $5, such increase shall be rounded to the next lowest multiple of $5.

(7) Coordination with other provisions

For purposes of this section, the terms “working condition fringe” and “de minimis fringe” shall not include any qualified transportation fringe (determined without regard to paragraph (2)).

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If this doesn’t get to the point of how confusing and complex the legislature can be, nothing will.  So after the initial defeat in the house of the $700 billion bailout, the senate rewrote the bill, adding all sorts of unrelated things in an attempt to gain the votes of the house members who initially opposed the bill.  One of the things they added was the Bicycle Bill, which was actually written by our best friend in Congress, Earl Blumenaur.  Of course, the senate also added things to attract republican votes, such as subsidies for coal gasification and oil shale development, as well as a subsidy for racecar track owners and an import duty exemption for arrow importers, among other things.

This version passed the senate, and today passed the house, but one vote they didn’t get was Earl Blumenauer’s.  I must say I am impressed by his stand on principle, voting against something very dear to his heart because it was bundled in what he considers bad policy.

We all owe Mr. Blumenauer a debt of gratitude for his support of the Bicycle Commuter act, and while I can’t get behind some of the other earmarks in this bill, I’m sure glad the cyclists get something out of it.

We’ll provide the details of how the bicycle fringe benefits will work in the coming tax year, and when they go into effect when we get them.  Cheers!

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