Tax Credits: Understanding the E-Bike Act
In February 2021, the Electric Bicycle Incentive Kickstart for the Environment Act (E-BIKE Act) was introduced to the U.S. House of Representatives by California Representative Jimmy Panetta. This potential law could represent some great benefits for e-bike owners and the environment. At E-Lux Electric Bikes, we are excited to see this sort of movement in the government.
The E-Bike Act
The E-Bike Act would create a federal tax credit equal to 30% of the purchase price of electric bikes up to a maximum credit of $1,500. This credit would be available to all e-bike purchasers, regardless of socioeconomic status (a common divider in tax credit bills). Class 1, 2 and 3 electric bikes of a value of up to $8,000 qualify for the credit.
Additionally, there is currently no overall cap on the tax credit. So, if every American were to buy an e-bike, everyone would get the credit. This contrasts against some other initiatives that may be more limited in scope.
This act is significant for a few reasons. First and foremost, it helps to make electric bikes into an even more affordable form of transportation. Compared to standard bikes, electric bikes can take you further and faster with less effort. Relative to other motorized vehicles, they are inexpensive and extremely energy efficient.
Additionally, Representative Panetta bringing this bill to Congress is an excellent step forward to getting e-bikes recognized as a viable and valuable form of transportation. The climate crisis is an unprecedented problem that will require creativity and significant changes to solve. Switching to cleaner transportation methods is one such change. The e-bike act seeks to support that change.
Overall, the E-Bike Act is something that electric bike supporters should be excited about. If it passes, it will be both a practical win for encouraging more e-bike ownership and a symbolic victory, bringing e-bikes to the forefront of the environmental conversation. The E-Lux Electric Bikes team is very happy to support this bill.
To support the E-Bike Act, sign the People for Bikes HR1019 petition to encourage your representatives to co-sponsor the bill.
California Initiatives
In addition to the E-Bike Act, there are some state initiatives. Here in California, a 2019 bill expanded incentives for turning in old, polluting cars to include giving out vouchers for e-bikes. Previously, the bill would provide support for buying hybrid and electric cars. So, that bill made it easier for Californians to buy e-bikes if they used the Clean Cars 4 All Program.
The California Biking Coalition, CalBike, has a campaign pushing for funding to provide grants to help people buy e-bikes. These grants would be available to low-income Californians to help them buy e-bikes. Unlike the E-Bike Act and the Clean Cars 4 All Program, this program would provide upfront money with no conditions other than using it to buy an e-bike.
Join In With an E-Bike Today
Whether the E-Bike Act gets implemented or not, it is clear that interest in electric bicycles is growing. If you are interested in getting one for yourself, check out the E-Lux Electric Bikes catalog. We have models for every type of rider. Plus, you can get a free test ride to make sure you’ve found the right bike for you.
#Elux #ElectricBikes #EbikeAct #CalBike #California