A bill introduced by Democratic lawmakers proposes a tax credit of up to $1,500 for those who purchase electric bikes.
An increasing number of individuals are turning to e-bikes not only for leisure activities but also for commuting purposes, as they seek to move away from personal automobiles.
E-BIKE Act
Introduced in March by Rep. Jimmy Panetta (D-Calif.), the E-BIKE Act, formally known as the Electric Bicycle Incentive Kickstart for the Environment Act, is a revised version of a 2021 bill that was excluded from the 2022 Inflation Reduction Act.
The popularity of electric bikes is on the rise worldwide, with e-bike sales in the US outpacing electric and hybrid cars combined, according to the Light Electric Vehicle Association.
Several cities in the US have already introduced e-bike tax credits, including Denver where residents can apply for a rebate of up to $1,200 per person. The program was temporarily paused due to high demand.
What is the Eligibility Criteria for the E-Bike Tax Credit?
The tax credit for bikes costing less than $4,000 was limited to persons earning less than $75,000 per year (or $150,000 for couples) in the 2021 plan. The 2023 version, on the other hand, extends the credit to everyone earning up to $150,000 per year (or up to $300,000 for couples) and provides a 30% discount, up to $1,500, on e-bikes costing less than $8,000.
Can the Legislation Pass into Law?
The E-Bike Act is currently in its early stages in the House of Representatives, and although it has more bipartisan support than previous versions, Democrats will need Republican support to pass it in the Senate.
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