Government increases support for Cargo Bikes to €3000 under the Bike to Work scheme

Press release from the Department of Transport - 20th Oct 2022

Minister for Transport welcomes increase in support for Cargo Bikes under the Bike to Work Scheme

Minister for Transport Eamon Ryan has welcomed the decision to include a new higher limit for Cargo Bikes in the revised Bike to Work Scheme announced today as part of the Finance Bill.

The substantial new increase to a €3,000 limit was sought by the Department of Transport to encourage greater use of cargo bikes. Cargo bikes cost substantially more than regular bikes or e-bikes, both of which saw increases in the limits applicable for the Bike to Work scheme in 2020.

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). However, today’s announcement sees the limit for Cargo Bikes double 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.

Notes

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