It’s tax season: There should be incentives for bikes
Many cities are floating the idea
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Tax season is here! It began Feb. 19 so hopefully you’re working away on your, if you haven’t already filed. There’s all sorts of credits and incentives for Canadians that you may not know about, but should bikes be one of them? Many think it’s time that all bikes, whether traditional or pedal-assist, should give you a break when you file.
In 2021, Toronto Councillor Mike Layton put forth a motion to amend the city’s latest bike plan to include tax incentives for both traditional and e-bikes. Layton is a cyclist himself and has been involved with much of the increase in bike infrastructure in Toronto. The amendment is to “add financial incentives for purchasing all bikes, e-bikes and other non-carbon vehicles that are approved for use on City of Toronto road ways and cycling infrastructure.”
Lost in the shuffle (?) today of IEC approving #ActiveTO bike lanes to be made permanent plus an ambitious #bikeTO cycling network plan that would match 2020 progress of ~30km of new bikeways a year is this #TransformTO amendment from @m_layton for bike and e-bike incentives: pic.twitter.com/iGeeEIm8Sh
— Midweek Cycling Club (Parody) (@midweekcycling) December 3, 2021
The bike boom
2020 and 2021 saw a massive uptick in cycling, and has resulted in many more people using their bike as primary transportation across Canada. There’s also been a surge of e-bikes as a method of transportation or for delivery services. Cities across Canada have begun pilot projects with delivery services like FedEx, grocery or retail stores.
The value of bikes to the economy
Bicycles are a much more environmentally friendly resource than cars, so it makes sense that a payment or tax might make sense as both a reward for those who choose to ride, instead of drive. Additionally, with traffic levels returning to pre-pandemic levels, there is an urgent need to reduce car traffic in urban centres. It has been proven that bikes take up far less room than cars in cities, and more people using their bike as opposed to a car would alleviate much of the gridlock.
Finnish transport minister @TimoHarakka giving a speech about the recent ten-fold increase in national funding for cycling as well as tax incentives for bikes – part of #HelsinkiSummit2021 via the @Handshake_EU project that Copenhagen participates in @CyclingEmbassy @HennaHovi pic.twitter.com/8gobMKgWJZ
— Marie Kåstrup (@cykelmama) August 19, 2021
Breaks for bikes
In many places, there are already tax incentives or credits either in place, or being floated for electric cars. Many cyclists wonder why the same shouldn’t apply not just e-bikes, but traditional rides as well.
How about a $12,500 annual tax incentive for commuting by transit or bike? https://t.co/vMf0bqundb
— Spokane Rising (@spokanerising) November 2, 2021
The argument to provide incentives to switch to sustainable transportation for traditional bicycles e-bikes would also reduce financial burden for individuals or families by eliminating their need for a costly vehicle that can cost thousands of dollars a year in gasoline and upkeep.
Value for the dollar
The average cost to own a car is estimated to be up to $13,000 per year. For example, according to the Canadian Automobile Association (CAA), a 2017 Honda Civic can cost more than $8,000 to operate annually when driven all year in Ontario.
A tax incentive could certainly be a good stimulus for working families to switch to using their bikes as their primary means of transportation, or at the very least, use their bicycles more for errands or commuting.
