Besides rescuing Wall Street, the $700 billion bailout bill could put a little cash in the pockets of working stiffs who pedal to work.

Tacked onto the bill was a change in the U.S. tax code that gives companies a break if they pay workers who commute by bicycle a monthly stipend of up to $20. Employees would not have to pay tax on the money and employers could deduct it as an expense from the federal tax they owe.

"This is a transportation fringe benefit, which means the employers don't have to offer these benefits," said Walter Finch, advocacy director at the League of American Bicyclists. Called the Bicycle Commuter Act, the measure takes effect Jan. 1.

Employers decide how often employees must commute by bike to qualify for the benefit. They also could offer other benefits, such as vouchers to bicycle shops, instead of cash.

"Probably the easiest thing for an employer to do is just put another $20 a month in the pre-tax section of the employee's paycheck," Finch said.

The employer receives a tax credit, which is better than a deduction, said Matt Richardson, a lawyer at the firm of Manley Deas Kochalski in Grandview Heights.

"They are recouping all the money they pay to the employee and not just a fraction of it, which is what would happen if it was a deduction," Richardson said.

A Clintonville resident, Richardson said 10 to 15 people at the firm regularly commute by bicycle.

One of them, Kevin L. Williams, also from Clintonville, wasn't sure whether the law firm would participate in the program, "but I assume the answer is yes."

He noted that the firm, which has about 200 employees, has invested in bike racks and has a shower in the office.

Battelle is taking a look at whether to extend the bicycle benefit to employees.

"It's on our radar," said T.R. Massey, spokesman for the research and development organization. "It is just so new we really haven't had time to really analyze it yet."

Massey doesn't know how many Battelle employees bicycle to work at the King Avenue facility near the Olentangy Trail, but the company has an "active community of bikers," he said.

Half of the workers in the U.S. live within 5 miles of their place of work, and more than a quarter of all commutes are 1 mile or less, according to the Census Bureau. But less than 1 percent of commuting is done by bicycle.

Employers have been able to offer workers tax-exempt benefits of up to $220 a month for the cost of parking, or $115 a month for using transit or vanpooling. Those programs also are voluntary for employers.

U.S. Rep. Earl Blumenauer, D-Ore., had been trying for several years to add bicycle commuters to the list of beneficiaries.

"We are trying to level the playing field for cyclists," said Hillary Barbour, spokeswoman for Blumenauer.

Some have suggested the bicycle provision was added to the bailout bill to get Blumenauer to vote for the bigger legislation.

"He still voted no," said Jeff Stephens, executive director of Consider Biking, a bicycle advocacy group in Columbus.

Barbour, however, said the bike provision was part of a larger Renewable Energy Tax Credit initiative attached to the bailout bill.

tdoulin@dispatch.com