30% electric bike tax credit advances in US Senate

Remember the proposed 30% electric bike tax credit in the US? It’s now one step closer to law thanks to recent advances in the U.S. Senate.

A new bill known as the Electric Bicycle Incentive Kickstart for the Environment (E-BIKE) Act was presented to the Senate late last week.

The bill, p.2420, is an accompanying bill to HR1019 that was introduced to the House of Representatives at the beginning of this year.

The Senate bill was introduced by Senators Ed Markey (D-MA) and Brian Schatz (D-HI).

It proposes a 30% tax credit on purchases of new electric bikes in the United States, up to a maximum credit of $ 1,500.

The aim of the bill is to promote electric bicycles as an alternative means of transport to cars. Not only would this help reduce harmful emissions, 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 and Senate must pass their versions of the bill, then any differences between the two must be addressed before going to President Joe Biden’s desk to sign the bill.

To qualify, electric bikes would have to cost under $ 8,000, which is the vast majority of electric bikes sold in the US.

The most common electric bikes used for commuting fall in the $ 1,000-3,000 range, while higher-quality e-bikes from more upscale companies are typically closer to $ 4,000-6,500.

Electric bikes of classes 1, 2 and 3 would be eligible, ie e-bikes up to 45 km / h could qualify. However, e-bikes with motors with a continuous output of over 750 W or speeds of more than 45 km / h below motor output would not be qualified.

The tax credit would also be fully refundable, which also helps lower-income drivers reap the benefits.

The Senate draft was tabled late last week and is expected to attract a number of co-sponsors in the coming weeks.

The House of Representatives currently has nearly two dozen co-sponsors, all of them Democrats. No Republicans have signed up to co-sponsor the law since its inception in February.

To support this bill, simply visit the US Congress website here and click “Contact Your Member” to find your Senator’s contact details.

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