Wednesday, December 27, 2017
Bicycle Commuter Benefit — Use It Now!
From our friends at The League of American Bicyclists:
The recently signed-into-law Tax Cut and Jobs Act suspends the Bicycle Commuter Benefit from 12/31/2017 until 1/1/2026. If your employer currently offers the Bicycle Commuter Benefit, the safest thing to do is to submit all documentation and pay out all reimbursements by December 31 2017.
In addition to suspending the benefit, the Tax Cut and Jobs Act eliminates the ability of employers to deduct the cost of providing subsidized commuting to employees, reducing the employer’s taxable income, as part of cutting the business tax rate from 35% to 21%.
Sadly, the Tax Cut and Jobs Act did not:
- Do anything to expand the availability of commuter benefits – which are currently 7 times more likely to be offered to workers in the highest 10% of income than workers in the lowest 10% on income;
- Do anything to provide incentives to modes of transportation that reduce congestion, such as walking, biking, telework, or carpooling; and
- Do anything that affects employees who put their pre-tax earnings towards a commuter benefit.
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