WASHINGTON (BRAIN) — The House of Representatives on Friday morning approved the Build Back Better Act that provides billions of dollars in funding for an e-bike tax credit, bike commuter benefit, and climate and equity-enhancing infrastructure as part of the $1.75 trillion social spending bill.
The bill now goes to the Senate.
"The House's latest vote on the Build Back Better Act embraces bicycles as part of a climate solution, thanks to new financial incentives for bikes and e- bikes and grants for climate and equity focused infrastructure improvements," said Jenn Dice, president and CEO of PeopleForBikes, which has been advocating on behalf of the bill. "We urge the Senate to take up the BBB before the end of the year so we can get to work on lowering transportation emissions while keeping all people, no matter how they travel or where they live, moving."
The inclusion of the E-BIKE Act, a 30% tax credit over five years for the purchase of an e-bike, would mean money back for those looking for a green transportation option. The tax credit was proposed by Congressmen Jimmy Panetta (D-Calif.) and Earl Blumenauer (D-Ore.) as part of the E-BIKE Act.
The Build Back Better Act proposes proposes $4.1 billion for e-bike tax credits. It also would establish an $81 a month pre-tax benefit for biking to work that could be used with parking and transit and bike share, micromobility and e-bike costs.
The tax credit can be applied to the purchase of a new e-bike (the first $3,000) up to $900 benefit value, and up to a $4,000 bike. It allows taxpayers to claim credit for one e-bike per taxable year — two for joint filers — beginning in 2022. The credit would phase out starting at $75,000 of modified adjusted gross income ($112,500 for heads of household and $150,000 for married filing jointly) at a rate of $200 per $1,000 of additional income.
