From January 1st, 2023, the bike to work tax incentive is increased to €3,000 for cargo bikes. Previously anyone looking to purchase a Cargo Bike could only avail of the limits which were available for bicycles (€1,250) and electric assist bicycles (€1,500). This limit for Cargo Bikes has therefore doubled to €3,000, whether electrically assisted or regular cargo bikes.
The Bike to Work Scheme aims to encourage the public to cycle to and from work. The initiative allows employees to give part of their salary for a bicycle and/or safety equipment, which should be used primarily for journeying to and from work. The purchase is not taxable benefit-in-kind and can be made in any shop.
How do I avail of the scheme?
If you have decided to buy a cargo bike, the first thing to do is to browse our cargo bike section. Once you have decided which model you would like, contact us. You'll be able to come and test ride the bike. If you decide to go for it, we will issue an invoice to your employer. More details on how to do the bike to work scheme can be found here.
Background
The Bike to Work scheme was introduced in 2009. It was first amended in July 2020 when the original €1,000 limit was increased to €1,250 for bicycles and €1,500 for electric assist bicycles. Those limits could also be used for Cargo Bikes, today’s proposed change increases the limit for Cargo Bikes only to €3,000 whether electrically assisted or regular.
Following today’s announcement, there are now 3 limits, depending on the type of bicycle purchased, under the Bike to Work Scheme:
- for cargo bikes and safety equipment, the limit is €3,000
- for pedelecs or ebikes and related safety equipment the limit is €1,500
- for other bicycles and related safety equipment the limit is now €1,250