Electric Bikes

The Bike to Work scheme introduced by the Irish Government is one of many such schemes run by governments across a number of the EU states. The number of EU states offering such schemes is steadily increasing and is another indicator of the momentum that is building behind cycling as an alternative mode of transport to the car for getting to work.

In April, the Italian government introduced subsidies of between €180 and €1,300 on the retail prices of new bicycles, e-bikes and pedelecs. For a bicycle and pedelec, the maximum subsidy is €700 for a bike with a retail price of €2,330, this is considered to be the average retail price of a high-end pedelec by Italy’s Ministry for the Environment.

Using tax incentives to promote bike sales in Europe is not a new phenomenon.
In Belgium tax laws allow (since 1997) employers to pay employees a tax-free fee of €0.20 for every kilometer they cycle to work. There is no obligation on employers to sign up to the scheme, employers make the decision on whether or not they want to pay the fee and to whom. Research by the Belgian government showed cycling increased significantly when companies paid the fee, with the number of cyclists in these companies generally rising by 50%.
In Holland employers are allowed by law to give employees tax free bikes up to an amount of €749. Almost 20% of all new bikes sold in Holland in 2008 were bought this way.
The UK government in 2005 launched their Cycle to Work tax incentive scheme. Employers lend bicycles to their staff as a tax free benefit on the condition that the bicycles are used predominately for travel to and from work or for work related purposes. At the end of the lending period, the employee may buy the bike from the employer for a nominal sum.

Tags: Tax incentives for cyclists

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