Bicycles are in the $700 billion Bailout Bill

bamabikeguy

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Bikes in Wall St. Bailout Bill

This is all I found so far, in the $700 billion "rescue plan", but I plan on changing my advertising blurb.....

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.


Since I use the Tanaka 33cc and R/S 35cc, I contend they will meet the definition of "bicycle", and all the extras (tubes/liners/baskets/wide saddles) would qualify as "bicycle improvements"
 
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bamabikeguy

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Spreading the word

Off on a 3 county/4 newspaper jaunt this morning, to spread the word about this "bicycle" development...we need to get employers informed ASAP.

Here's the letter sent to a reporter at the Gadsden Times:

Hi Andy,

I have 2 BJ Hill stories, Saturday in Cullman and Sunday in Holly Pond, and I posted YOUR article on about 15 forums in advance of his reaching Atlanta. I let him ride the bike in picture one, explained how I can tour America at $10 a day (compared to his $35), and eat up scenery in 250 mile hunks per day.

Cross-country walker gathers messages for president | GadsdenTimes.com | Gadsden Times | Gadsden, AL

There is a breaking (yesterday) story about bicycles and the $700 billion dollar Wall Street bailout, specifically

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.


Since 2005 I have been spreading the word of a made in USA solution to the oil wars, especially in smaller towns along back roads, distributing flyers and via FUN local newspaper articles.

The news article written June 12, 2007 by Kim Bryan in the Birmingham News went into international syndication, (her first national story). It produced a video which apparently is in many languages:

YouTube - Fuel Efficient Motorized Bicycle - 250 mpg

And when I say spreading the word, there have been probably 30 articles about my long distance traveling, here are a few:

Ada Oklahoma:

AdaEveningNews.com - Ada, Oklahoma - Alabama man retaliates against high gas prices

Nashville Arkansas:

The Nashville News

Heflin Alabama:

Cleburne News - Motorized cyclist headed for Cleburne

.
On the Cheaha/Cleburne trip, the mayor of Heflin gave me a magazine "Welcome to Alabama's Emerald Triangle" (inc. Clay/Randolph county) attractions. The Chief Ladiga Trail was incomplete at that time.

Today I am headed to Jacksonville for a day trip, then next week I'll be spending a week exploring the Trails to Georgia, eating and shopping at Mom and Pop operations, distributing flyers and explaining 150-200 miles per gallon transportation.

This winter I'm going to try and duplicate an air plane engineer's feat, (in Michigan), who is rumored to be achieving 350 miles per gallon.

There are very large and active forums applying American know how to the breakthroughs in motorized bicycles, of which Golden Eagle, in Lansing, Michigan is the industry leader, holding all the informal records for mileage and distance. Their website is Golden Eagle Bike Engines, Geared Belt Drive Bicycle Engines / Motors for Mountain Bikes & More.

I urge any reporter to contact Dennis and Julia, the owners of Golden Eagle, about exciting news in motorized bicycles, INCLUDING police and inspector departments adding these money savers to their rolling stock. Pizza delivery is about to be revolutionized, and I'll tell you HOW.

I've built quite a few at my hobby shop in Holly Pond, here are some pictures:

Picasa Web Albums - Paul - Bikes built i...

Andy, I'm writing you and plan on at least dropping a flyer off at the office today, and I'll be stopping at any other newspaper I pass.

This is an important development in the Bail Out bill, and with over 20 years of income tax preparation in my background, I see a loophole big enough to ride George Bush's $5,000 mountain bike through.

Bicycle improvements are exactly what I do to a bike, for less than $1,000 including engine. I use puncture proof tires, large delivery baskets, wide saddles on shock absorber seat posts, 35 miles per hour WITH cruise control...

I hope everybody who receives this letter will spread the word to friends and family.

See you on this trip or next weeks camping/biking tour which will take me hopefully to twenty or more counties. I don't carry a watch or compass on my tours, often end up a hundred miles from my original destination, but always having fun.

pc
 

bamabikeguy

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Details: $20 per mo. $240 per bike per year

Senate Passes Bailout Bill Loaded with Tax Provisions Including Bicycle Commuting Reimbursement

Section 211 of the Senate Bailout bill states:

“(a) In General- Paragraph (1) of section 132(f) is amended by adding at the end the following:

`(D) Any qualified bicycle commuting reimbursement.’.

(b) Limitation on Exclusion- Paragraph (2) of section 132(f) 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) 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, 2008.”

pension protection act, ppa, senate, bailout, HR 1424, bicycle commuting, qualified transportation, 132(f), ERISA
 

manaox2

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Sep 29, 2008
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You should probably hope a little more that your employer decides to participate in the reimbursement program.

$240 a year isn't that much ($20 x 12). If they were to divide the money up in the bailout plan among every single American, it would give everyone ~$2,294. Or just build another 980 empire state buildings...

Take a look at what they already give to motorized vehicle owners: Publication 15-B (2008), Employer's Tax Guide to Fringe Benefits

Employers can deduct cars as business expenses on taxes, there are plenty of huge reimbursements on business travel (not from home to work though).

IMO, this is just the fat ring on the pork.
 
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amealnet

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Sep 19, 2008
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if the government is encourageing all of us to use our bicycles to commute then they should drop all the restrictions on peddle-assist bicycles
 

lennyharp

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Jul 19, 2008
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And here I thought the ploiticos had us all fooled. So Pork is what we ask for and it is what we got. Security is more important than independence and freedom to ride my motored bike so I am regulated till I am sick of big daddy who cannot guarrantee safety and security anyway.
 

bamabikeguy

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I'm going to find some accountants and tax preparers for additional info, but my thinking on this is twofold....a small company needs incentive to spend for things like bike racks, sheds or even small bike rooms.

However, with bike lockers, they could not only depreciate the cost, but receive the reimbursement under the "storage" clause

Bike Lockers, Bike Racks, Bike Storage & Bike Parking : Cycle-Safe, Inc.

Bicycle Security Storage Lockers, Racks and Equipment Introduction

I prepared income taxes seasonally for about 20 years, and we had 2 companies put up thousands of custom built storm windows during the Carter energy conservation programs, where home owners could get up to a $2,000 credit for windows and insulation.

So I think there will be a huge push for "green" credits, so a plant owner could combine ideas, throw a solar water heater on top of his bike barn. Once an accountant grabs onto a "credit" or "refund", he will milk it every year after that.

If the economy ever picks back up and buildings get expanded, such an incentive, to get employees on bikes, would reduce the amount of parking area required/asphalt costs....eliminating 20-30 cars would give a plant owner a lot of possible square footage and keep him on the same site, rather than look for a larger lot.

You have to think 10 years down the road, 10 bikes over 10 years is $24,000, 40 bikes is a tad less than $100,000.

That is how the storm windows/insulation idea worked, the money you saved on improvements paid back over 5-7 years, after that it is profit via savings.
 

bamabikeguy

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Oh, and one other thing I've found in my travels....when a Hyundai or Kia or Mercedes planning committee comes over to the US to search for possible plant locations, because the Euro/Asian societies are BIKE friendly, they specifically seek places that either have bike lanes and trails, or who will build them.

It is another two-fer, fresh air and exercise for the employee without the gymnasium expense, and less asphalt/security costs. With the catalytic converter crime wave going on, fences are having to be erected now, and patrols hired to keep criminals out from under the vehicles with saws.

This incentive is aimed at those large corporate industries too, who can take advantage in major ways, if they put up a 100 slot bike rack, it won't matter how many employees use it, they get 100 times $240 per year.