New Bill introduced to Benefit Bicycle Commuters

Tue April 22 2003
Posted Apr 22, 2003
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H.R. 1265 - Bicycle Commuter Act, introduced by Congressman Earl Blumenauer (D-OR) and Congressman Mark Foley (R-FL) March 4, would give employees who bike to work the same financial incentives currently available for employees who choose mass transit or van pools. The bill would change the existing transportation fringe benefit in the tax code to include bicycle commuters. In 1998, the Transportation Equity Act for the 21st Century (TEA-21) was enacted, with one of the provisions being the transportation fringe benefit. The goal of this provision is to entice more people to use alternative modes of transportation rather than single-occupancy vehicles for commuting, thereby reducing traffic congestion, pollution and road wear. According to Kathie Eastman, spokesperson for Congressman Blumenauer, the tax benefits under the transportation fringe benefit go to either employee or employer. "The employer can pay for the benefit [like a] bus pass, [or] parking fee, and then get a tax deduction/credit for it. Or the employer can pay the employee cash," explains Eastman. This money is tax-free since it is being used for commuting. Employees can receive up to a $180 tax exemption for participating in qualified parking plans or $100 for bus fare or vanpool expenses. The Bicycle Commuter Act would extend these benefits to bicycle commuters, although a monetary amount has not been decided. "It's time to level the playing field for bicycle commuters," says Blumenauer in a press release. "Bicycling is one of the cleanest, healthiest and environmentally friendly modes of transportation that exists today. People who bike to work should have the same financial incentives as those who use transit or participate in a qualified parking plan." While bicyclists do not pay for bus passes or car parking, bicycle commuters do have transportation expenses. Besides rain gear, lights, maintenance, panniers and the like, bicycles also pay commuter-related expenses such as bike lockers and bike parking, claims the League of American Bicyclists. "It's an issue of fairness, if people can get tax breaks for commuting by car, why not bike?" asks Eastman. Plus, bikes do not cause the same environmental impacts as cars and buses. According to figures provided by the League, "half of all Americans believe that cars, SUVs, pickups and vans are the primary cause of air pollution and 65 percent are concerned about the level of traffic congestion." It continues, "If the purpose of the [transportation fringe benefit] is to reduce traffic congestion, alleviate air quality problems, and conserve energy, it makes sense to add bicycling to the definition." An increase in bicycle commuters could also help battle America's growing obesity problem. More than 50 percent of the US adult population is overweight. With $22 billion spent each year on health care related to the obesity condition and 10 percent of annual deaths caused by physical inactivity, bicycle commuting, argues the League, "is an ideal solution to the need for moderate physical activity, which can be practiced five times a week." The Bicycle Alliance of Washington also supports the bill as incentive to ride more often. "It's a way for busy, but sedentary people to incorporate activity into their daily lives," says Linda Schwartz, Commuting Programs Director with the Bicycle Alliance. The League also asserts there is great potential to increase the number of bicycle commuters. "The Bureau of Transportation Statistics recently found that bicycling is the second most preferred form of transportation after the automobile - ahead of public transportation." In addition, forty percent of all trips in the U.S. are made within two miles of the home and 50 percent of the working population commutes five miles or less to work claims a 1995 Nationwide Personal Transportation Study. "People look for incentives to ride. They say, 'I don't have a good bike, I don't know a safe route to ride, my work pays for my parking, why would I bike?' This is one more potential obstacle that can be removed," comments Schwartz. "It adds a level of legitimacy to bicycle commuting; we would like to see it as a main stream option." And with the proper incentives, that could become the case for this target group of commuters. With so many obvious benefits, few oppose the bill. Eastman points out there would be a slight loss in federal revenues because of the tax payments, but no one has voiced opposition regarding this point. "It's largely a non-partisan issue," says Scott Bricker with the Oregon Bicycle Transportation Alliance. Plus the League claims the savings from reduced traffic, pollution and road maintenance outweigh other costs. Bricker also believes employees who are healthier from bicycling to work regularly will cost less on company health plans. "Instead of taking a parking spot I can cash out on biking to work, buy bike equipment, be healthier, save the company money and be a better worker," says Bricker as he describes how he hopes commuters will look at the bill. Blumenauer introduced the Bicycle Commuter Act bill in time for the 2003 National Bike Summit in Washington D.C. At the Summit Blumenauer sought sponsors for the Bike Commuter Act and new members for the Congressional Bike Caucus, which Blumenauer founded. The Caucus, at the end of 2002, was made up of 116 congress members interested in bicycling for various reasons. Other Summit activities included a rally, lobby day, reception with three-time Tour de France winner Greg LeMond and a bike ride. Representatives from the Bicycle Alliance of Washington and the Oregon Bicycle Transportation Alliance attended the Summit to ask Congress members to endorse the bill. "In many cases they were already on board," says Schwartz. Bicycle advocates also lobbied to reauthorize TEA-21, which will end with the current fiscal year claims Bricker. Eastman explains the bill is still in the early stages; the Ways and Means Committee must take up the Bicycle Commuter Act for a hearing, after which it will move on to the House where it needs 218 votes to pass. To help support this bill contact your congressperson and ask him or her to sponsor the bill. By Taryn Fagerness