Employees who commute to work by bicycle can be reimbursed for up to $20 per month, effective January 1, 2009. It is considered a qualified transportation fringe benefit.

According to IRS Publication 15-B, Employer's Tax Guide to Fringe Benefits, commuters who travel to and from work by bicycle in a qualified month can be reimbursed by employers up to $240 per year for maintaining, repairing, storing, and buying bicycles. A qualified month is any month an employee “regularly uses the bicycle for a substantial portion of the travel between the employee's residence and place of employment.”

An employee who receives the biking reimbursement cannot receive other commuting benefits, including parking or transit benefits, in the same month.