Cycle to Work tax assistance increases to €1,250 and €1,500 for pedal assist electric bicycles

An increase in the amount tax incentive in the Cycle to Work scheme has been announced in the COVID-19 jobs stimulus package released by the Government today.

The Cycle to Work scheme has no upper limit on the bicycle which can be purchased but the amount under the tax incentive stopped at €1,000.

This will now be raised to €1,250 for non-electric bicycles and €1,500 for pedal assist electric bicycles.

A Government statement on the package states: “An increased allowable expenditure under the Cycle to Work scheme from €1,000 to €1,500 in respect of ‘ebikes’, and €1,250 in respect of other bicycles will be introduced.”

Electric bikes which are not pedal assist and on which the bicycle’s motor does not stop helping at 25km/h, are not road legal in Ireland without following the tax, licensing and other rules for motorcycles.

We previously reported that the Programme for Government includes covering electric bicycles and cargo bicycles under a type of expanded Cycle to Work Scheme, and that grants might be included.

Most countries in Europe which incentivise cargo or electric bicycles go beyond Cycle to Work Schemes and have grants of varying amounts for more expensive bicycles.

It’s unclear at this point if the electric-car grant system will also be expanded for cargo or electric bicycles in Ireland.

EDITED: Extra reporting added on the context of the Programme for Government and grants.

I am editor of IrishCycle.com and have reported on and commented on cycling in Ireland for over a decade. My background is in journalism -- I have a BA in Journalism from DCU and HDip in Print Journalism from BCFE. I wrote about cycling for national newspapers, and then started CyclingInDublin.com for overflow stories. Later the website was re-branded to reflect a more national focus.

18 Comments

  1. Disappointing to see them encourage non-exercise cycling.

  2. @Aiden
    Or you can see it as enabling people who live further out to be able to invest in a suitable mode of transport.
    Either way, it is one less car.

  3. Tifanie Alves July 24, 2020 at 7:11 am

    This is great ! When would it be in application ?

  4. Raymond Collet July 24, 2020 at 8:30 am

    I live in a country side snd i am retired but cant find a bike to buy or to expendive or not good for the price but i use to cicle for fun

  5. attila hajnal July 24, 2020 at 8:31 am

    This is bullshit. You increase the amount for electric bikes but not for all bikes? Si if someone wants a better fitness it’s not in support buy rather being lazier is. I understand you want all people welcome to cycling but have to make it fair regardless the bike they wish to ride. This is government doing business on your account without your input. Don’t sell us short. Leave people the option. Stop trying to control people. Non electric bike owners want to ride too. Why not support that just as any? You could support all groups by not simply limiting it.

  6. Cycle thefts are very common in Dublin. When we spend so much money on cycle, then if that cycle is stolen we are back to public transport. Chance of getting your cycle back is almost zero, even after the thieves are identified by Garda. We need to wait to complete 5 years before applying for ‘ Cycle To Work’ scheme again. Govt. should do something to help in such scenarios.

  7. @attila as the article outlines both electric and non-electric are getting an increase.

  8. ABunchOfCliches July 24, 2020 at 1:49 pm

    Any date for when new limits are effective from?

  9. @Alex – Totally agree, my first bike i got on the scheme was stolen within first 6month after purchase, even with Garda report still had to wait 5years to avail of scheme again…nonsense…

  10. What about people out sick and haven’t got a job who want to regain fitness by cycling? No help

  11. It’s disappointing that there is no assistance for retired people or those not in the work force to buy a new bike. Like Raymond Collet, I am retired and live in the countryside where In the absence of public transport,Ineed a reliable car for long journeys..
    I feel guily starting a diesel car which I can’t afford to change ,to drive short journeys but would happily cycle for shopping to my local town.
    Living on a pension I cannot afford the expense of a car and the ourlay on a new bike.
    It’s not as simple as buying second hand either .When you are older your body has changed and you may need to get properly measured and assessed for your bicycle.

  12. When is it coming into effect?

  13. Erm, thanks for the snobbish comments from the cyclists. I have a deteriorating lung condition and, under normal circumstances, can’t cycle. I got myself an electric assist bike last year (not one that goes on its own) and starting cycling 15km to and from work. This stopped me driving into the city centre and improved my fitness.

  14. Why does it only cover people with jobs? Surely those without jobs need more help. Also every 5 years is ridiculous. How much of a credit break do you get for an electric car…..? Up to €5000. And how often can you avail of this…? As often as you like, from what I can see in the guidelines.

  15. Martin Hennessy July 31, 2020 at 12:12 pm

    Any idea when the new rates come into effect? I’ve ordered a bike and am waiting to send my application.

  16. All this does is drive up the price of bikes and encourages abuse by local bike shops , as is with the existing scheme. I would only ever purchase a bike from overseas, much better spec for price.

  17. Looks like the relevant Revenue docs have been updated. Changes effective from 1st August
    https://www.revenue.ie/en/tax-professionals/tdm/income-tax-capital-gains-tax-corporation-tax/part-05/05-04-08.pdf

  18. Kathryn Clifford August 19, 2020 at 2:14 pm

    This is great! i am in the process of buying a cargo bike so i can drop two kids to school and collect. it will reallly help with those hills.

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

%d bloggers like this: