WASHINGTON (BRAIN) — Democratic congressmen have reintroduced the E-BIKE Act, renewing hope that Congress can pass federal tax credit for e-bike purchases.
The Electric Bicycle Incentive Kickstart for the Environment Act is led by Reps Jimmy Panetta (D-Calif.), Earl Blumenauer (D-Ore.), Mike Thompson (D-Calif.), and Adam Schiff (D-Calif.), and Sen. Brian Schatz (D-Hawaii). The legislation prioritizes e-bikes as a zero-carbon mode of transportation.
First introduced in 2021, this latest E-BIKE Act is similar. If passed, it would offer consumers a refundable 30% tax credit for a new e-bike purchase of less than $8,000, with the credit maxing out at $1,500. The credit would be allowed once per person every three years or twice for a joint-return couple buying two e-bikes.
New in this version is the addition of income caps mirroring the electric vehicle tax credit caps: an annual salary of $150,000 for single filers, $225,000 for household heads, and $300,000 for joint-filers.
"Incentivizing electric bicycles makes them a competitive transportation option for more Americans and supports a national effort to lower carbon emissions," said PeopleForBikes CEO Jenn Dice. "The E-BIKE Act rightfully positions electric bicycles as a critical part of a larger solution to climate change and equitable mobility. We're grateful to our climate leaders in Congress leading the charge on e-bikes."
PeopleForBikes urges contacting your representative or senator to co-sponsor the bill.
The bill also mandates a report from the IRS after two years to understand the distribution of the credit by income tax bracket and adjust for equity.
An e-bike tax credit was included in the House-approved Build Back Better Act in 2021, but it was cut from what became the Inflation Reduction Act, which is now law.
