The IRS has announced that, "beginning January 1, 2009, the monthly exclusion for commuter highway vehicle transportation and transit passes increased to $120 and the monthly exclusion for qualified parking increased to $230. Beginning March 1, 2009, the monthly exclusion for commuter highway vehicle transportation and transit passes increased to $230.

Furthermore, "beginning January 1, 2009, a taxpayer may be reimbursed for reasonable expenses of qualified bicycle commuting. Reasonable expenses include the purchase of a bicycle and bicycle improvements, repair, and storage. The exclusion for a calendar year is $20 multiplied by the number of qualified bicycle commuting months during that year.

A qualified bicycle commuting month is any month a taxpayer uses the bicycle regularly for a substantial portion of the travel between his or hers residence and place of employment and that taxpayer does not receive any of the other qualified transportation fringe benefits. A taxpayer is not entitled to this exclusion if the reimbursement for bicycle commuting is made under a compensation reduction agreement."

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