I work for the State of California. No incentives for riding my bike, though they do provide a limited number of bike lockers, at least at our regional office building - no idea about other BDOs (boards, departments, offices), and showers. The shower rooms have lockers, but you're only allowed to use them while you're at work and exercising, so I can't leave my clothes in them after hours (I used to until a co-worker snitched), even if I take my clothes into my cubicle during work hours. They do subsidize public transportation to a maximum of something like $75/month.

A couple of years ago, someone who worked for one of the boards (under the same agency my department is under) got the idea to design bicycle jerseys and shorts with the agency logo and the names of all the BDOs. I don't know exactly what hoops he had to jump through to get approval, but he finally got the OK from the Powers-that-Be. However, the kit came with "guidelines". One of the conditions of wearing the kit is that if anyone asks we need to make it clear that no state funds were used to design, procure or distribute these items. I was expecting the guidelines to say something about obeying traffic laws, being respectable representatives of the agency, or something like that, but it was mainly about no state funds being used.