The E-BIKE Act creates a consumer tax credit that will cover 30% of the cost of the e-bike, up to a $1,500 credit. It only applies to new e-bikes that cost less than $8,000 and is fully refundable, allowing lower-income workers to claim the credit.
“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,” Panetta said. “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 cannot only encourage more Americans to transition to greener modes of transportation, but also help fight the climate crisis.”
The bill has support from People For Bikes, which urges bicycle advocates to contact their representatives for support of the bill. People For Bikes said studies show that across the U.S. there would be an 11% decrease in carbon emissions with a 15% increase in e-bike mode share.
People For Bikes has made it easy for you to send an email to your representative. To help pass the bill, click here.
Federal Tax Incentives May Be Next For E-Bikes
On Tuesday, Congressman, Jimmy Panetta (D-Calif.) and Earl Blumenauer (D-Ore.), introduced the Electric Bicycle Incentive Kickstart for the Environment (E-BIKE) Act to encourage the use of electric bicycles or e-bikes through a consumer tax credit.The support for e-bikes are due to the fact that it provides greater distance, speed, and accessibility but it will also help reduce carbon emissions.