Thursday, 28 March 2024
Electric BikesEV NewsNews

US government defunds eBikes, prioritizes EV financial assistance

PeopleForBikes’ Director of Federal Affairs, Noa Banayan reports that the US government financial assistance for eBikes, which had already frustratingly capped at the $1500 price point, has now been cut altogether.

PeopleForBikes reports, “Introduced on July 27, the climate- and energy-focused Inflation Reduction Act of 2022 misses a massive opportunity by neglecting to invest in an electric bicycle tax credit and other critical initiatives to promote biking for transportation. This omission leaves us sorely disappointed in the future of climate policy given the significant transportation investments in the bill are squarely focused on electric vehicles. While PeopleForBikes remains supportive of urgently needed climate action and broader policy solutions, we’re sorely disappointed that Democratic leadership axed most consideration of bicycles and active transportation in the Inflation Reduction Act of 2022.”

The Verge further highlights that the “$900 refundable tax credit on the purchase of a new electric bike was left on the cutting room floor by congressional negotiators, to the consternation of bike advocates that have been pushing for it for years.”

It is also noted that this particularly asinine move, given the EV specific funding comes under the Inflation Reduction Act of 2022, which seeks to invest $369 billion in clean energy and other climate fighting tools, now rules out eBikes, despite “a recent study finding that if 15 percent of car trips were made by e-bike, carbon emissions would drop by 12 percent.”

For context, the Financial Times recently highlighted that, “eBikes accounting for over €12 Billion worth of sales” in 2021, further pointing to the economic power that a shift from cars, be they ICE or EV, brings with it, driving built environment transformation conversations which will drive the remodelling of the cities we live in, and the experiences we have as we interact with urban and rural spaces.

Mirroring frustrations in the UK is the Bicycle Association response to an end to EV subsidies which pivoted funds toward infrastructure, not eBikes. For a more detailed review of this response, click here.