The Latest News on the E-Bike Act and Build Back Better
In June, we published a blog detailing the Electric Bike Inventive Kickstart for the Environment Act (E-BIKE Act) which had been initially introduced in February. The aim of this act was to use tax credits to encourage people to buy electric bikes for their reduced emissions. This proposal has now found its way into the Build Back Better plan, which could spell good news for electric bike enthusiasts.
The Current Status of the Proposal
The E-BIKE Act is no longer a standalone proposal. Instead, it has been included with the Build Back Better plan, an ambitious though somewhat controversial plan that served as a centerpiece of President Biden’s campaign.
Build Back Better is not a single piece of legislation, but rather an overall agenda that will be broken between several plans. Part of the plan was signed into law with the American Rescue Plan in March 2021. Another bill, the Infrastructure Investment and Jobs Act, followed in November.
Additional legislation is in the works in Congress to address a variety of environmental and social policy goals. The current proposal in the House of Representatives includes much of the E-BIKE Act in it. While the final legislation is likely to change significantly, the electric bike provisions seem relatively uncontroversial. There is a higher chance of the electric bike tax credit being a policy focus now that it is part of the broader agenda.
What It Means for Electric Bike Ownership
Should additional legislation from Build Back Better be signed into law, the impact would be great for electric bike enthusiasts. The current version offers a tax credit of up to $1,500 for anyone who purchases an electric bike. The credit is equal to 30% of the total value of the bike provided that the bike is worth less than $8,000. Bikes purchases between $5,000 and $8,000 would get the full $1,500. Those valued at less than $5,000 would get 30% of the purchase price.
Additionally, this credit is also only available for people making a certain amount of money. Individuals earning less than $75,000, heads of household earning less than $112,500 and couples filing jointly earning less than $150,000 can get the full benefit. Beyond those thresholds, the credit would begin phasing out at a rate of $200 for every $1,000 spent on the purchase.
Overall, this is a great thing for e-bike ownership. It helps to make these bikes more accessible for people who may otherwise not be able to afford one.
Other Things To Know About the Proposal
In addition to the e-bike credit, cyclists would get to enjoy some pre-tax commuter benefits. These include up to 30% of the parking benefit (equal to $81 per month) by cycling. Additionally, several credits and other benefits for cycling already became law in the infrastructure bill. Together, these legislative efforts represent some good news for e-bikes.
Get Started With E-Bikes
Are you interested in riding an electric bike? E-Lux Electric Bikes has a great selection of performant, comfortable and stylish e-bikes. Check out our catalog today then schedule a test ride to see how practical and enjoyable e-biking can be.
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