New 30% US tax credit introduced for e-bike sales

Federal legislation was introduced today to create a federal tax incentive for the purchase of e-bikes in the United States.

Electric cars and motorcycles already have their own federal tax incentives in the United States, and now e-bikes could be next.

That’s thanks to the Electric Bicycle Incentive Kickstart for the Environment (E-BIKE) Act, which was spearheaded by Reps. Earl Blumenauer (D-OR) and Jimmy Panetta (D-CA).

The new legislation is designed to make e-bikes more affordable for average Americans.

As Congressman Panetta explained in a statement provided to Electrek:

“E-bikes are not just a fad for the privileged few, they are a legitimate and convenient form of transportation that can help reduce our carbon emissions. My legislation will allow more people of all socioeconomic levels to own electric bikes. electric bikes and will help reduce our carbon output. By encouraging the use of electric bikes to replace car trips through a consumption tax credit, we can not only encourage more Americans to switch to greener transport systems, but also help to fight the climate crisis.

The Aventon Level commuter electric bike

E-bikes offer many of the same environmental and societal benefits as conventional pedal bikes, but are easier for cyclists to adopt thanks to an electric-assist motor providing pedal assistance.

In the US they typically reach speeds of up to 28 mph (45 km/h) with pedal assist or 20 mph (32 km/h) with a hand throttle, which does not require pedaling and can allow the electric bike to function more like an electric moped.

If the E-BIKE law is eventually enacted, it would provide a 30% tax credit of up to $1,500 for the purchase of an e-bike. To qualify, the e-bike should be priced below $8,000. The vast majority of e-bikes sold in the United States are priced well below this level and therefore could qualify for a tax credit of up to $1,500.

Only one tax credit can be applied in a three-year period, but couples filing jointly could claim two tax credits in three years to cover two e-bike purchases.

Sales of e-bikes exploded in the United States last year. With prices typically in the thousands of dollars, however, many Americans who could benefit from e-bikes as sustainable transportation alternatives are unable to afford them otherwise.

As PeopleForBikes CEO Jenn Dice explained:

“Encouraging e-bikes makes them a competitive transportation option for more Americans and supports a national effort to reduce carbon emissions. The E-BIKE Act rightly positions e-bikes as an essential part of a broader solution to climate change and equitable mobility.We are grateful to Congressman Panetta for leading the charge in Congress.

Electrek’s Grasp

This is incredible news. While this legislation still has a long way to go and likely faces an uphill battle, the benefits for Americans and the environment could be so vast they are even hard to imagine.

A new wave of low-cost e-bikes such as the popular $899 Lectric XP and $1,099 RadMission Rad Power Bikes have already helped increase e-bike adoption. Pricier but more capable e-bikes like the $2,499 Juiced HyperScorpion have given Americans a taste of how more powerful e-bikes can become full-fledged transportation machines. And fitness/transportation hybrid e-bikes like the $3,350 Specialized Turbo Vado SL and high-tech e-bikes like the $3,329 GoCycle GX have helped make high-end e-bikes more affordable for more riders. . Now imagine that you get 30% off all these prices.

It is within the realm of the possible!

The main sticking point of this legislation is probably the cost, although it may not be as expensive as it seems.

It is estimated that the United States imported around 600,000 e-bikes last year. With back-of-the-envelope calculations assuming an average price of $1,500 per e-bike, a 30% tax credit would cost around $270 million. It’s barely two F-35 jets. Who would miss two rolls?!

Or I have an idea. We could tax the rich to compensate. Now wait, listen to me… See, here’s the thing: they have a lot of money.

Basically, there are so many benefits to this, and the lost tax revenue would be easy to find elsewhere.

I say, let’s do it!

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