Proposed Tax Credit for Electric Bikes and Electric Motorcycles!
Aug 07, 2012
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Get a tax credit on your electric bike purchase?
The United States Senate Finance Committee has approved a tax credit for electric bikes and electric motorcycles.
If the bill passes the credit would be 10% of the purchase price of the electric bike or electric motorcycle, up to $2,500.
The idea is to provide an incentive for people to buy 2 wheeled electric vehicles and boost the e-bike industry in the US.
“This is about good paying American jobs,” Senator Ron Wyden (D-Oregon) said. “These jobs are going to go somewhere. … Are they going to be red white and blue jobs or are they going to be developed by our competitors?” (From The Detroit News)
Of course not everyone is in agreement with this decision.
Sen. Orrin Hatch, R-Utah, questioned the provision and noted that the country faces huge debt and tax issues. If the committee can’t end this tax break, “how can we deal with the bigger issues?”
“Hatch added: “Do we really want to portray ourselves as members of the Finance Committee to drive over the fiscal cliff riding on the back of an electric motorcycle”?” (From The Detroit News)
Well, if you are in the market for a new electric bike this tax credit may just give you the incentive to buy one soon! Stay tuned to see if the bill becomes reality.
Make sure you check out the original article on this proposed tax credit.
NOTE: I am not a tax professional and you should consult with your tax professional for all the details.
What do you think? Will this tax credit provide enough incentive for you or your friends to buy an electric bike or electric motorcycle? Please leave your thoughts in the comment section below.
Thanks!
-Pete
P.S. Don’t forget to join the Electric Bike Report community for updates from the electric bike world, plus ebike riding and maintenance tips.
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What “United States Senate Committee”? Then it has to be heard and passed by the Finance Committee (unlikely). Then the full Senate (very unlikely). Then approved by committee and the full, tea kook controlled House of Representatives (not a chance in hell). Don’t be fooled by opportunistic politicians.
Well I am optimistic because there are already tax credits for other electric vehicles.
“Do we really want to portray ourselves as members of the Finance Committee to drive over the fiscal cliff riding on the back of an electric motorcycle?”
No, Orrin. Instead drive over the fiscal cliff on the backs of the middle class; on the principle that you are a Republican with no fiscal vision.
Pete: This is a great idea. I’m not sure it’ll become law, but let’s hope so.
Hi Ted, yes let’s hope that it does!
It’s nice to get notice of Senate action, but isn’t House approval required? Why the noise when the game hasn’t started yet?
Hi Robert, it’s true that it is not official yet but I think people should be aware that it could be a possibility.
So where are most of these electric bikes and scooters made? Yup, you guessed it – China. I would be in favor of tax credits for products made here in the USA but not the crap sent over from China. Those of you that already ride electric bikes or motorcycles already know that you are getting a huge tax break – you are not paying for gas like your unenlightened brethren.
We need to also emphasize the health benefits of bicycling. Many oldsters cannot use ordinary bikes and all encouragement to use electric assist needs to be given. While the CSPC defines them as ordinary bicycles and the ADA will require lifting the “No Motorized Vehicle” signs from public trails in time, local police mostly remain woefully uninformed and sometimes grievously hassle electric bike owners. So do HOA’s who are notoriously rule-making organizations, even when their residents are mostly the over 55-set. Manufacturers could help more to in awareness as could lobby efforts by national bike clubs.
The original article said the credit would be applicable to US made bikes. Given that 97% of the bicycles sold in the US are made in one of the two Chinas and almost all of the small motors that could be used for e-assist bikes are made there as well as practically every hub motor for e-assist bikes, Does “Made in the US” include “Assembled from components made overseas”? I know some cars are considered as “Made in the US” when 90% of their parts are completed overseas and just assembled here.
One thing I don’t like about the proposed legislation is there is nothing for the DIY market, even if the parts used are sourced from local manufacture.
Yes, it should include conversion kits an electric bike is an electric bike. Once you convert a bike over it is now a capable electric bike to run errands on while saving gas and keeping the air a little more cleaner
I oppose a tax credit for electric bikes. “credits” come with stifling entanglements and limitations. I built and use my bikes to avoid “the Man’s” bureaucracy. Don’t give them control over our chosen method of travel. Basically, this is a scheme to bolster sales to Chinese manufacturers and to enhance the corporate bottom line. Freedom, not Statism!
Who will pay the bribe money – sorry, I meant campaign contributions – to ensure that this will become law? Obviously Orrin Hatch thinks it’s small potatoes.
Tax breaks are only for the wealthy. And now it will cover their $20K+, toy e-bike. My Full $3k-350 watts E-Assist bike-kit investment will remain as a testament that I am not wealthy but Much, Much Smarter 😉
finally the government is realizing that ebikes can create a significant numbers jobs and revenue, reduce dependance on foreign oil, reduce green gas emissions, reduce gridlock
and reduce health care costs through a healthier population
$billions have been pumped into the auto sector for various reasons,
ebikes can become a significant part of the transportation mix and should be encouraged