The Daily of the University of Washington

Bailout plan provides tax break for bike commuters


In January, bike commuters and non-bicyclists may have a more compelling reason to commute on two wheels: the transportation fringe benefit to bicycle commuters.


Photo by Courtesy Photo: Matt Mikul.

Two randonneurs—a French term for long-distance riders—climb Tiger Mountain on the annual Seattle International 100k Mountain Populaire. The recently passed federal bailout includes a monthly $20 reimbursement for employees who regularly bike to work.



Photo by Courtesy Photo: Matt Mikul.

Matt Mikul took a break from his commute to the U-District to shoot a picture of his bike and Mount Rainier in the background. Mikul is likely to receive reimbursement for biking expenses such as purchasing, storing, maintaining and repairing bikes.


The “bike commuter tax break” is part of the $700 billion Wall Street bailout bill, also known as H.R. 1424, which Congress passed three weeks ago. Legislators managed to include a provision that will give bike commuters $20 a month in tax relief.

Jack McLaughlin, a senior engineer at the UW Applied Physics Laboratory who has been commuting by bicycle for seven years, expressed some concern about the incentive.

“Twenty dollars a month seems like too little to change behavior,” McLaughlin said. “I view it more as an endorsement of sorts of bicycling by the federal government. ‘Here’s $700 billion for Wall Street, and oh, here’s an Andrew Jackson for the guy on the bike.’ It’s definitely a positive thing, though.”

Sonia Honeydew, program coordinator for the bioengineering department, believes the reimbursement of cycling costs is a useful way to increase bicycle commuting and help the public by providing cleaner air, a healthier population and less traffic. Honeydew commutes from West Seattle.

“Like most people, I have a lot of fun riding my bike,” Honeydew said. “The 20 miles to work doesn’t seem far, and it’s a huge factor in my quality of life.”

Matt Mikul is a software tester at Microsoft and an avid bike commuter who regularly writes about his adventures on the road on his blog “Cycling in Seattle” and even offers bicycle routes on his Web site, Veloroutes.org.

“I think the tax break is a good thing; anything to make it easier for more people to roll on two wheels is great.” Mikul said. “Personally I don’t get to enjoy the benefit, as my employer already gives us free bus passes which apparently negate getting this tax break as well from what I’ve heard so far. But in this age of billion-dollar wars and bailouts, giving U.S. citizens an incentive to use more sustainable forms of transportation is always a good thing.”

Mikul isn’t alone in his sentiment. UW employees have expressed “some excitement” and others are “curious and enthused” said Joshua Kavanagh, director of UW Transportation Services.

“This provision was part of a larger package of recommended action,” Kavanagh said. “I’m happy that it occurred; this is a positive first step.”

Kavanagh believes the tax break is a clear acknowledgement that bicycle commuting is valid and on-par with responsible transportation methods such as carpooling. “I’m not aware of any federal funding for implementation,” Kavanagh said. “Implementation will be a challenge.”

According to the new legislation, stacking, which is defined as combining various transportation means to enhance greater social and financial responsibility, doesn’t include commuting by bicycle.

“The benefit is symbolically important,” Kavanagh explained. “The real benefit is actually quite small. The pre-tax benefit will allow bike commuters to set aside up to $240 over a 12-month period. The [after] tax savings is considerably less, compared to other methods: only about $60 per year.”

Kavanagh said the UW’s transportation programs are based on participation, and that the UW program would most likely be a pre-tax savings program. All of UW’s transportation offerings require a participation fee.

“What we intend to do is look for ways to provide some benefit for minimal implementation costs,” Kavanagh said. “We do have a window of time to bring some of this benefit to UW employees.”

Kavanagh said the UW will have to balance between having a very robust program and generating benefits for the broadest possible audience.

Honeydew believes that every little bit helps.

“As an administrator, I know about unfunded mandates, so I hope the paperwork is minimal,” Honeydew said. “Bike advocacy groups have been trying to pass this for years so I’m glad. We should also continue other efforts to encourage bike commuting, such as improving trail networks.”

It’s estimated that more than 5,000 UW faculty, students and staff commute to the UW by bike every day.

Reach reporter Anthony Shelley at news@dailyuw.com.


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