Congressman Blumenauer of Oregon included a bike commuter benefit provision in HR1424, the $700 billion Wall Street bailout package that passed the house today and was signed by President Bush shortly afterward.

“We are delighted that the bicycle commuter benefits act has passed after a lengthy and persistent campaign spearheaded by Congressman Blumenauer (D-OR),” said League of American Bicyclists President Andy Clarke. “Bicycle commuters will now be extended similar benefits to people who take transit and drive to work – it’s an equitable and sensible incentive to encourage greater energy independence, improve air quality and health, and even help tackle climate change. Thanks to everyone who has helped reach this milestone, especially Walter Finch and Mele Williams, our government relations staff over the years who have worked tirelessly with Congressman Blumenauer, Senator Ron Wyden (D-OR) and many others in Congress.”

The benefit — up to $20 per month — begins with the new year in 2009. Employers may reimburse employees, tax free, for “reasonable” expenses related to their bike commute, including equipment purchases, bike purchases, repairs, and storage if the bicycle is used as a “substantial part” of the commuter’s trip to work for the month. If you already receive another commuter tax-free fringe benefit (like a Commuter Check or EcoPass), you don’t qualify, so multimodal commuters are out of luck.