And just how would the government actually know that you are riding you bike to work? Institute a tax credit like this and every dirtbag in America will claim it just because he/she owns a bike. Heck, they would probably just SAY that they owned one.
It's a noble idea but there are so many devious people out there!
California had a bill that has apparently faded away but it would have allowed employers to reimburse bicycle expenses to employees and write them off of their corporate taxes the way they do for public transit fares and things like that.
The way it currently works is that an employer can reimburse you a portion of your subway ticket or bus fare after you submit a report that shows how much you paid. The employer then deducts that amount on their taxes.
The way the commute bike bill was written, you'd submit an expense report for cycle commuting and show receipts for tires, gloves, maintenance (I'm not sure what was allowed and disallowed), and you'd get partial reimbursement and the company could deduct them from their taxes in the same way.
Would have been a nice perq, but I doubt if it would make any more people commute by bike.