Yes, the Emergency Economic Stabilization Act of 2008 (P.L. 110-343), which President Bush signed on October 3, 2008, adds qualified bicycle commuting reimbursements to the types of qualified transportation fringe benefits that an employer may provide to an employee who commutes to work using a bicycle. The provision applies to tax years beginning after December 31, 2008.
Annual limitation. The applicable annual limitation in case of any qualified bicycle commuting reimbursement is $20 for every qualified bicycle commuting month for any calendar year. This annual limitation is not subject to inflation adjustment.
Qualified bicycle commuting month. "Qualified bicycle commuting month" refers to any month during which an employee regularly uses a bike for a substantial portion of travel between the employee's residence and place of employment and the employee did not receive any other transportation fringe benefit.
Qualified commuting reimbursement. A "qualified bicycle commuting reimbursement" refers to any employer reimbursement during the 15-month period starting with the first day of a calendar year to an employee for reasonable expenses incurred by the employee during the calendar year for the purchase of a bike and bike accessories, repair and storage of a bike that is regularly used to ride to and from work.
No salary reduction agreement. Unlike other qualified transportation fringe benefits, the bicycle commuting fringe may not be provided pursuant to an elective salary reduction agreement.
Cite: Code Sec. 132(f)(1)(D), as added by the Emergency Economic Stabilization Act of 2008 (P.L. 110-343), Div. B, Act Sec. 211(a).