[Congressional Record Volume 152, Number 45 (Monday, April 24, 2006)]
[Senate]
[Pages S3425-S3426]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. WYDEN (for himself, Ms. Snowe, Ms. Cantwell, and Ms. 
        Collins):
  S. 2635. A bill to amend the Internal Revenue Code of 1986 to extend 
the transportation fringe benefit to bicycle commuters; to the 
Committee on Finance.
  Mr. WYDEN. Mr. President, today I am pleased to be joined by Senators 
Snowe, Collins and Cantwell in introducing the ``Bicycle Commuters 
Benefit Act of 2006''.
  I know that I am speaking for many people in this country who want to 
do something concrete about our Nation's

[[Page S3426]]

dependence on oil and gas. They do not think our national energy policy 
is doing enough. They are eager to do things that make them feel like 
they can take responsibility for overcoming their dependence on oil and 
gas. As gas prices continue to climb this spring and summer, more and 
more people are going to be looking for something that they can do to 
free themselves from this dependency. The bill I am introducing today 
gives Americans more incentive to give up the cars and trucks that they 
drive to and from work everyday and get on their bicycles instead.
  According to recent Census reports, more than 500,000 people 
throughout the United States commute to work by bicycle. They are 
freeing themselves from sitting in traffic. They are saving energy and 
overcoming their dependence on oil and gas. They are getting exercise; 
avoiding obesity and helping us keep our air clean and safe to breathe.
  Yet they are commuting by bicycle at their own expense. Their fellow 
employees who take mass transit to and from work have an incentive 
created in the Transportation Equity Act for the 21st Century that 
enables their employers to pay for their bus or subway ride. This 
incentive is great for mass transit commuters but it discourages people 
from riding their bikes to and from their jobs. The Bicycle Commuters 
Benefits Act of 2006 will eliminate this discrimination against bicycle 
commuters.
  The bill extends the fringe benefit that employers can offer their 
employees for commuting by public transit, to those who ride their 
bicycles to and from their jobs. Our bill amends the tax code so that 
public and private employers can offer their employees a monthly 
benefit payment that will help them cover the costs of riding their 
bikes, instead of driving and parking their cars where they work. The 
bill also provides employers the flexibility to set their own level of 
benefit payment up to a specified cap amount. That way, employers and 
their employees can decide how much of an incentive they need to stop 
driving and start riding their bikes. Those who currently ride the bus 
and/or subway to work would also gain an extra incentive to ride their 
bikes. Employers can deduct the cost of their benefit payments from 
their taxable income. This reduces the taxes that they pay to the 
Federal Government. And, in turn, employees will receive anywhere from 
$40-$100 per month as a non-taxable benefit, to help them pay for the 
costs of riding their bikes.
  I think that this is a fair and modest proposal that will reward 
employees who ride their bikes to and from their jobs.
  Our Senate bill matches HR 807 that was introduced during the first 
session of the 109th Congress by my fellow Oregonian, Congressman Earl 
Blumenauer. He has 47 co-sponsors from both sides of the aisle and 
every part of the United States eager to offer bicycle commuters the 
same incentive that I want to give commuters who take mass transit.
  In addition, our bill is supported by many regional and national 
bicycling organizations such as Cycle Oregon, the Bicycle 
Transportation Alliance, the League of American Bicyclists, the 
Washington Area Bicyclist Association and hundreds of Capitol Hill 
employees who commute by bike to work every day.
  When you think about it and you look around our cities, the taxpayers 
have paid for millions of dollars of bike trails in all of America's 
urban areas and major job markets. Now, bicycle commuters will have an 
extra incentive to use them to commute to and from their jobs.
  One week from today, we will start celebrating May as ``National 
Bike-to- Work'' month. I can't think of any better way to commemorate 
this special month than by introducing this legislation. I look forward 
to working with our colleagues to see this legislation pass.
  I ask unanimous consent that the bill be printed in the Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                S. 2635

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Bicycle Commuters Benefits 
     Act of 2006''.

     SEC. 2. 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) Bicycle commuting allowance.''.
       (b) Bicycle Commuting Allowance Defined.--Paragraph (5) of 
     section 132(f) of such Code (relating to definitions) is 
     amended by adding at the end the following:
       ``(F) Bicycle commuting allowance.--The term `bicycle 
     commuting allowance' means an amount provided to an employee 
     for transportation on a bicycle if such transportation is in 
     connection with travel between the employee's residence and 
     place of employment.''.
       (c) Limitation on Exclusion.--Paragraph (2) of section 
     132(f) of such Code is amended by striking ``subparagraphs 
     (A) and (B)'' and inserting ``subparagraphs (A), (B), and 
     (D)''.
       (d) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2005.

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