TBS 2019-01 Active Bicycle Commuting Subsidy Policy Changes
Bicycle Benefit Program Bulletin
Bulletin: TSB-2019-01
Date: October 4, 2018
Subject: Policy changes to the Active Bicycle Commuting Subsidy Programs
Purpose: This Bulletin provides notification for the conclusion of the DOT Bicycle Benefit Program and the expansion of the ABC Subsidy Program.
Background: On January 1, 2018, the newly enacted Tax Cuts and Jobs Act suspended the tax exclusion for the qualified bicycle commuting reimbursement described in 26 U.S.C. 132 (f). Because of this tax code change, DOT’s tax-exempt Bicycle Benefit Program is eliminated and a new 2018 DOT bicycle commuter policy is being implemented that establishes the ABC Subsidy as the only bicycle reimbursement available to DOT employees. The ABC Subsidy is flexible and will subsidize the same reimbursable biking expenses offered under the Bicycle Benefit Program. The ABC Subsidy Policy supersedes the non-taxable Transportation Fringe Benefit to Bicycle Commuters.
Information: ALL DOT employees are eligible to apply for this subsidy. Forms are required that certify bicycle use for the work commute. Note: Contractors and other Non-DOT federal employees working in DOT offices are not eligible. The monthly maximum amount of the ABC subsidy is $20 per participant. This amount is equivalent to the previously offered bicycle benefit. However, unlike the bicycle benefit, the ABC subsidy is to be recorded as a taxable fringe benefit on the employee’s W-2 form. Eligible DOT employees can submit a claim that will be reimbursed for self-certified out of pocket expenses not exceeding $20 per month up to $240 per participant.
Restrictions: Participants who submitted claims for the tax-exempt bicycle benefit for the months of October-December 2017, who now qualify for the ABC subsidy, may only submit claims for the months of January 1, 2018 and forward. Participants who exclusively participated in the ABC Bicycle Program will be able to submit claims for the period of November 1, 2017 – Sept 30th, 2018.
Required Action: Please retain your bicycle expense receipts. The ABC Subsidy claims periods will end on September 30th, 2018.
If you wish to submit claims for this ABC Subsidy taxable fringe benefit, please visit http://dotnet.dot.gov/
1.Choose Parking/Transit.
2.Under DOT Item 4 (DOT ABC Subsidy) select the following forms:
- ABC Subsidy Certification Form
- Standard Form 1164
- Direct Deposit Sign-Up Form
Submit your completed signed forms along with your paid receipts via email by October 20h to Parking.TransitOffice@dot.gov
Contact: For more information, please contact the Parking Transit Office Parking.TransitOffice@dot.gov.