Using pre-tax money for your bike commute (or purchase)

[jsternitzky]

I am starting a new job and one of the benefits offered is IRS Section 132 Commuter benefits which allows a person to use pre-tax dollars to pay for commuting cost (mostly mass transit and/or parking fees).

I pulled up the IRS regulation and part of the benefit allows a person to use pre-tax dollars to pay for a bike if it is used for commuting to work. Also, repairs, improvements, and storage can be paid out of pre-tax dollars.

I am going to use the term improvements loosely and assume that an Electric conversion is an "improvement".

http://www.irs.gov/pub/irs-pdf/p15b.pdf

[Sibley]

Unless there's something that defines "bicycle" to exclude electric bikes, it looks like it'd be covered.

[seattlecyclone]

Of course, nothing is forcing your employer to offer the most expansive program permitted by law. You may find that they have systems in place to order you a bus pass or a parking pass, but they don't want to mess with verifying that your bicycle purchases meet the legal requirements just so you can avoid tax on $20/month of income. Every employer is different in this regard.

[big_slacker]

FWIW e-bikes aren't being allowed on a lot of trails because they're considered OHV. Although I don't know if the feds consider them a motorcycle or not.

http://reviews.mtbr.com/moab-blm-bans-electric-bikes-on-non-motorized-trails

[jsternitzky]

I wonder if you had a E-bike that was less obvious like the Copenhagen Wheel if you could get away with it.

http://senseable.mit.edu/copenhagenwheel/wheel.html

[Mirwen]

I'm not sure if you're understanding the benefit.  Your employer can reimburse you for commuting cost for biking up to $20 per month and it will not be added to your income for tax purposes.  This isn't something you can decided to do, your employer does it.  If your employer is offering this benefit, take it, but it won't be enough to buy an electric bike, it's just compensation for expenses. What you use to bike is immaterial.