Remember that proposed 30% tax credit for electric bicycles in the US? It’s now one step closer to becoming law, thanks to recent progress in the US Senate.
Late last week, a new bill was introduced to the Senate known as the Electric Bicycle Incentive Kickstart for the Environment (E-BIKE) Act.
The bill, S.2420, is a companion bill to H.R.1019 that was introduced into the House of Representatives earlier this year.
The Senate bill was introduced by senators Ed Markey (D-MA) and Brian Schatz (D-HI).
It proposes a 30% tax credit for new electric bicycle purchases in the US, up to a maximum credit of $1,500.
The goal of the bill is to help promote electric bicycles as an alternative form of transportation to personal cars. Not only would this help reduce harmful emissions, but it would also reduce traffic for everyone in crowded cities.
The bill would make this possible by amending the Internal Revenue Code to create the new tax credit.
To be successful, both the House of Representatives and the Senate must pass their versions of the bill, then any differences between the two must be addressed before heading to President Joe Biden’s desk to be signed into law.
To qualify, electric bicycles would have to be priced under $8,000, which includes the vast majority of e-bikes sold in the US.
Most common electric bicycles used for commuting fall into the $1,000-$3,000 range, while higher end e-bikes from more upscale companies usually cost closer to the $4,000-$6,500 range.
Electric bicycles in Classes 1, 2, and 3 would be eligible, meaning e-bikes up to 28 mph (45 km/h) could qualify. However, e-bikes with motors carrying continuous power ratings of above 750W or that reach speeds higher than 28 mph (45 km/h) under motor power would not qualify.
The tax credit would also be fully refundable, helping lower-income riders take advantage as well.
The Senate bill was introduced late last week and is expected to gain a number of co-sponsors in the coming weeks.
The House of Representatives currently has nearly two dozen co-sponsors, all Democrats. Since its introduction in February, no Republicans have signed on to co-sponsor the legislation.