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Bike Sharing

Chuck Schumer Proposes Making Bike-Share Memberships Tax Deductible

If you drive to work, the IRS allows you to pay for parking with pre-tax money. Same goes if you take the train or the bus (though transit commuters can't claim as much tax-free earnings as car commuters). People who ride their own bikes are also eligible to deduct some associated costs. But if you get to work using Citi Bike, Divvy, Nice Ride, or any of the other bike-share systems sprouting up in American cities, you get no such assistance from Uncle Sam.

Those to use bike share to commute to work may soon be eligible for the same tax benefits everyone else receives. Photo: Steven Vance
People who ride bike-share to work may soon be eligible for tax benefits like other commuters. Photo: Steven Vance
Those to use bike share to commute to work may soon be eligible for the same tax benefits everyone else receives. Photo: Steven Vance

New York Senator Chuck Schumer wants to change that by treating bike-share memberships like other commuting costs. Schumer plans to add an amendment to a Senate package of tax benefit extensions that would specifically list bike-share memberships as an eligible expense for transportation fringe benefits.

"Bike share programs are an efficient, healthy, and clean form of mass transportation, and they should be treated the same way under the tax code as we treat car and mass transit commuters," he said in a statement yesterday.

The amendment would allow commuters to deduct up to $20 per month in bike-share expenses from their taxable income, the same as regular bike commuters. That would make the entire cost of an annual bike-share membership tax-deductible. Chicago's Divvy, for instance, is prices at $75 per year, NYC's Citi Bike costs $95, and at the very high end of the spectrum, Deco Bike in Miami Beach costs $150. For commuters, a low-cost transportation option could become an even better bargain.

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