U.S. Senate Tax Plan moves to chop $20 a month cycle to work benefit

A U.S. Senate Tax Plan rolled out last week proposes to chop a $20 a month tax benefit for bike commuters.

Slammed by cycling advocacy organisation PeopleForBikes, the move is the latest sting for cycling in the U.S., which has faced a torrid time since President Trump took office.

“The cost of the federal bike commuter benefit is paid primarily by employers, and its tax-free provision costs the federal government only $5 million per year,” said PeopleForBikes President, Tim Blumenthal. “The benefits to both individuals and communities far exceed the cost. This modest reimbursement program has helped bike commuting grow by more than 50 percent nationwide during the last decade – easing road congestion, promoting good health, and supporting a crucial, economical mode of transportation for hard-working, low-income Americans.”

Pat Cunnane, CEO of Pennsylvania-based Advanced Sports Enterprises, Inc., said, “The $20-per-month tax-free benefit encourages more people to ride their bikes to work and offers employers like us a simple, health-focused incentive to give our employees.”

PeopleForBikes supports the House version of the bill for its continuation of the bike commuting benefit.

Blumenthal added: “As Congress continues to debate tax reform, we hope this provision is dropped from the final package to reflect the current House version.”

A recent paper dubbed The Surprising Promise of Bicycling in America outlines that a mood shift is currently happening in the U.S. when it comes to cycling and that with proper investment, cycling’s modal share could easily grow.