The Green Transportation Solution

Imagine if you could go to a bike shop, purchase a £800 bike and £200 worth of cycling gear and only pay £500 that is amortized over 12 months through a salary sacrifice arrangement with your employer.  Sound interesting?  Well, they are doing it in the U.K. with a government sponsored program called “Cycle to Work Scheme. “ The program has resulted in boosted ridership, increased bike shop sales, and the creation of one of the fastest growing industries in the U.K.

As one solution to the omni-present carbon producing transportation paradigm that the world faces today, the U.K. decided to take action and give employers a tax break for paying for 50% (up to £1000) of employees purchasing a bicycle and commuting gear.  The bicycle is to be used for commuting to work, but to this day there are no guidelines as to the number of days that an employee should commute to work. 

Benefits

Employers benefit from more physically fit, punctual and motivated employees.  Employees benefit from better health and better equipment because their money goes further.  Additionally, both employees and employers receive benefits in the way of tax savings.

About the Program

Under the UK government’s Green Transport Plan, the 1999 Finance Act enabled employers to loan employees cycles and cycling safety gear.  In 2005 the program was branded as the “Cycle to Work Scheme.”  Under the scheme, employers can purchase cycles and cycle protective gear and loan the gear to employees.  It is understood that if an organization chooses to participate in the program, all employees of that organization should have access to the program. 

When a cycle or cycling protective gear is purchased under the scheme, a tax exemption of these items applies to gear that is loaned out to employees.  For instance, if an employer purchases a cycle retailing at £450, that employer can reclaim the VAT, thus reducing the cost to £383.  Employers need to maintain ownership of the gear during the agreed term of the loan.  Participating employees can choose to pay for the gear over the term of the loan through a salary sacrifice arrangement with their employer.

Under the salary sacrifice arrangement, the employee agrees to accept a lower income in return for ownership of the cycle and cycling gear.  The gear is purchased from the employer over the loan term as a tax-free benefit and the employer will be responsible for up to £500 of the retail purchase of the gear.  The salary sacrifice reduces the gross income of an employee therefore reducing the tax that employee owes.  Likewise, with a reduced gross income payout, the employer saves on NIC’s owed for that employee.  Additionally, the employer can claim the gear as capital expenditures and deduct the gear at the end of the year.

The re-opening of the Cal Park Hill Tunnel is set for December 10, 2010.   The Cal Park Hill Tunnel will be opened as a pedestrian/cycling/commuter rail tunnel.  The commuter rail component is scheduled to be added in several years.  Transportation Alternatives for Marin (TAM), Freedom by WTB’s non-profit organization, cooperated with the Marin Bicycle Coalition (MCBC) and various other local agency groups to plan and initiate funding for the tunnel.

The Cal Park Hill Tunnel has been closed since the 1980s. The absence of a direct route connecting northern and southern Marin County has led to increased automobile traffic and was a physical obstacle that has deterred human-powered transportation in Marin.

Funding for the $27.5 million tunnel project was initiated after 10 years diligent efforts by the County and advocates including TAM and partner MCBC.  

The Cal Park Hill Tunnel was originally built as a railroad tunnel originally opening in 1884. Sitting in darkness for over 30 years, the tunnel has been a vision of hope to cyclists and pedestrians who dreamed that one day they could safely bike or walk between San Rafael and Southern Marin. Prior to the re-opening of the tunnel, the only option for those transiting from San Rafael and southern Marin County was to ride or walk on a highway off-ramp near San Quentin. The tunnel provides for multi-modal means of transportation throughout the county.

For more information about the re-opening event contact Marcus Vyvyan at 415-389-5040 x 23.

Within the past few years, these terms have found their way into just about every magazine, newspaper, website and marketing campaign in Western Culture. After decades of neglect and oppression, these terms have tugged, pushed, and pulled their way back into the consciousness of the mass western population. They are used as verbs, nouns, and adjectives. They are sleek and sexy. They are the new “Who’s Who” of the glamour world and counter-culture movement. They are a lifestyle. They are powerful.