Sunday, August 26, 2007

Bettcha He Drives a Hummer

Ben sent me a link that I am compelled to share:
http://www.youtube.com/watch?v=Ip8nozp7vs8
This is Patrick McHenry the US Congressional Representative from the 10th district in North Carolina.
This all seems a bit silly but, exerpted below is the paragraph from the Renewable Energy Act of 2007 that got rep. McHenry in a snit:
SEC. 205. EXTENSION OF TRANSPORTATION FRINGE BENEFIT TO
BICYCLE COMMUTERS.

(a) In General.--Paragraph (1) of section 132(f) of the Internal Revenue Code of 1986 (relating to general rule for qualified transportation fringe) is amended by adding at the end the following:

``(D) Any qualified bicycle commuting reimbursement.''.
(b) Limitation on Exclusion.--Paragraph (2) of section 32(f) of such Code is amended by striking ``and'' at the end of subparagraph (A), by striking the period at the end of subparagraph (B) and inserting ``, and'', and by adding at the end the following new subparagraph:
``(C) the applicable annual limitation in the case of any qualified bicycle commuting reimbursement.''.
(c) Definitions.--Paragraph (5) of section 132(f) of such Code (relating to definitions) is amended by adding at the end the following:
``(F) Definitions related to bicycle commuting
reimbursement.--
``(i) Qualified bicycle commuting reimbursement.--The term ‘qualified bicycle commuting reimbursement' means, with respect to any calendar year, any employer reimbursement during the 15-month period beginning with the first day of such calendar year for reasonable expenses incurred by the employee during such calendar year for the purchase of a bicycle and bicycle improvements, repair, and storage, if such bicycle is regularly used for travel between the employee's residence and place of employment.
``(ii) Applicable annual limitation.--The term `applicable annual limitation' means, with respect to any employee for any calendar year, the product of $20 multiplied by the number of qualified bicycle commuting months during such year.
``(iii) Qualified bicycle commuting month.--The term
`qualified bicycle commuting month' means, with respect to any employee, any month during which such employee-- ``(I) regularly uses the bicycle for a substantial portion of the travel between the employee's residence and place of employment, and
``(II) does not receive any benefit described in
subparagraph (A), (B), or (C) of paragraph (1).''.

(d) Constructive Receipt of Benefit.--Paragraph (4) of section 132(f) is amended by inserting ``(other than a qualified bicycle commuting reimbursement)'' after
``qualified transportation fringe''.
(e) Effective Date.--The amendments made by this section shall apply to taxable years beginning after December 31, 2007.
Now, you've all heard the term, "lawyer-speak", this is a fine example. It seems to me that perhaps, a better use of congressional time may be to suggest language more like, "hey, take out zero and insert $20.00 under the part about employer re-imbursement for riding your bike to work."
I would also be remiss if I did not add, that we all should be contacting our congressional representatives, from both houses, to be sure that they support any benefit that may accrue from riding a bike.
Thanks for tuning in - get out and ride!

3 comments:

Anonymous said...

Is that $20 per month from your employer or a tax write off?

Jeff

Unknown said...

My HR Dept would like to help me get this $20 subsidy, but doesn't know how.

Has anyone been successful?

Unknown said...

According to this site http://www.govtrack.us/congress/bill.xpd?bill=h110-2776
it has passed the House but has not yet been voted on by the Senate.

At $1M/year, this is a tiny portion of the bill, and will be subject to the debate over the much more impactful portions of the bill.

But it might be the kind of thing that state legislatures could do on a stand-alone basis.