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.