Last week, a new bill was introduced to the US Senate Known as the Electric Bicycle Incentive Kickstart for the Environment (E-BIKE) Act, proposing a 30% tax credit for the new electric bicycle purchases in the United States, up to $1,500. The tax credit would also be fully refundable, reports electrek.
This bill would mean that e-Bikes would have to be priced under $8,000, and that 30% of the e-bike’s cost would be covered, up to the value of $1,500.
E-Bikes that are in classes one, two and three would be eligible meaning e-Bikes up to 28mph could qualify. However, e-Bikes that are faster than 28mph would not.
The bill was presented by US Congressman Jimmy Panetta with the aim of promoting electric bicycles as an alternative and greener form of transport and making this more affordable and accessible to the public.
Congressman Panetta said: “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.”
If the bill is to be passed successfully, the House of Representatives and the Senate must pass their own versions and then address any differences before the President signs this into law.