After being cut in half, a proposed US tax credit for the purchase of new e-bikes was reduced to 30%.
The move comes as e-bike sales continue to grow, making alternative transportation an increasingly popular option as a replacement for the car.
This led several members of the US Congress to propose a tax credit earlier this year to help reduce the cost of electric bikes, which are several times more expensive than pedal bikes.
Congress gnawed at the bill, with the House of Representatives recently reducing the incentive from 30% to 15%.
Now, President Biden’s “Build Better” proposal has restored the proposed incentive to 30%. It would be capped at a maximum incentive of $ 1,500 and would only apply to e-bikes priced under $ 8,000 (which is the vast majority of all e-bikes).
A phase-out schedule is included based on income level. The credit would begin to gradually wane for taxpayers earning more than $ 75,000, although that figure increases to $ 112,500 for heads of households and $ 150,000 for married couples filing jointly.
There is still some way to go before the e-bike tax credit becomes law, but this is certainly promising news for those hoping to buy an e-bike as an alternative to car travel.
The proposed tax credit was designed to help Americans who could not otherwise afford the cost of an electric bicycle.
While several models of electric bikes can be found for less than $ 1,000, the most popular electric bikes cost several thousand dollars.
Even though e-bikes are expensive compared to pedal bikes, many cyclists have found that they ultimately saved a significant amount of money by switching from a car to an e-bike. In one case, a San Francisco woman saved about $ 50,000 over several years by switching entirely from a car to an electric bike.
Most commuters who don’t live in a densely populated urban area are likely to have a hard time fully replacing a car, but e-bikes are still useful for many local trips that don’t require a full-size vehicle. And with e-cargo bikes being able to carry multiple kids or a week of racing, more riders are finding that a full-size vehicle might not be as necessary as they once thought.
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