The University of Pennsylvania - Philadelphia's largest employer has rejected requests from employees to set aside benefits for bicycle commuters.
The Human Resources department sent this statement out as a response to a recent inquiry:
Currently the University is unable to offer this deduction for its employees due to the technical and procedural challenges involved. However, given the University’s strong commitment to sustainable transportation, we plan to explore automated processes for assigning, verifying and processing this benefit that may enable us to provide this benefit to our employees at some future date.
While the law itself in its current form is poorly written and needs reform, I don't think anyone would believe this simple tax benefit is too complex for the Ivy League institution to figure out. In fact UPenn recently won an award for its commuter services programming and has been adding hundreds of bike parking spaces.