Details are emerging of the new Government scheme announced in the budget to encourage people to cycle to work.  By 2020 they want 10% of all jouneys to be conducted by cycling rather than the 4% of Dublin commuters who currently cycling.

The scheme centers around a tax exemption up to the value of €1000 per person for the purchase of a bicycle, helmets, reflective clothing, bells/horns, lights, mirrors, mud guards, panniers, luggage carriers and straps. Security devices such as locks and chains are also covered as are pumps, puncture repair kits and cycle toolkits.  The scheme is managed by your employer.  They actually buy the equipment you select and they either pay for it or adopt a salary sacrifice scheme.  By paying for it they can claim it as a tax exempt benefit-in-kind. If you pay for it by salary sacrifice you get savings on tax, PRSI and levies. This method will save you at least 41 per cent on the cost of your bike at the top rate of tax.  You can claim this benefit every 5 years and it comes into effect from January 1st 2009.
Hand in hand with this scheme is a €5 million allocation in the carbon budget for the upgrading of cycle paths in Dublin so hopefully your journey to work on your new steed will be that much easier.  It is estimated that the bicycle scheme will cost the tax payer between €200,000 and €400,000 anually.