Last Updated: Feb 12, 2021
On February 9th, 2021, Congressman Jimmy Panetta and Congressional Bike Caucus Chairman Earl Blumenaur introduced the Electric Bicycle Incentive Kickstarter for the Environment Act to the United States House of Representatives. The proposed E-BIKE act has been submitted in order to kickstart and encourage increased demand for electric bikes by way of a tax credit for all United States citizens.
Speaking on his proposed bill, Congressman Panetta had this to say:
“E-bikes are not just a fad for a select few, they are a legitimate and practical form of transportation that can help reduce our carbon emissions. My legislation will make it easier for more people from all socio-economic levels to own e-bikes and contribute to cutting our carbon output. By incentivizing the use of electric bicycles to replace car trips through a consumer tax credit, we can not only encourage more Americans to transition to greener modes of transportation, but also help fight the climate crisis.”
What is the E-BIKE act?
The proposed bill, if passed and signed into law, would result in a full refundable tax credit for those who take advantage of the proposed legislation. While the full rules and regulations surrounding the bill are currently being debated by congress, the following restrictions are part of the current bill:
- The proposed bill would cover 30% of the purchase price of a single eBike once every three years, or twice for joint-return couples who are buying two electric bikes.
- The new electric bike must cost less than $8,000 dollars.
- A $1,500 dollar refundable tax credit is the maxed amount that can be awarded per bike. As such, you would receive the same credit for a $5,000 dollar eBike as you would for a $8,000 dollar eBike.
- This is a fully refundable tax credit. Up to $1,500 dollars can be subtracted from what you owe to the government the year you purchase your eBike. If the total tax credit awarded is more than the taxes you owe, the government will pay you the excess amount.
- The Internal Revenue Service, or IRS, will be mandated to deliver a report regarding the financial results of the proposed bill after two years. Additional adjustments may be made to the legislation based upon the findings, income tax bracket distribution, and equity of the proposed bill.