This tax credit would be wonderful news to avid e-bikers and new riders alike. The law has not yet been passed as of August 2021, but if approved, it would allow 30% (with a total limit up to $1,500) to be refunded per taxpayer on the purchase of an e-bike. The maximum price of the e-bike must be $8,000 or less. If two taxpayers buy eligible e-bikes and file a joint tax return, the credit would be doubled so that both riders could take advantage of the discount. As one of the many joys of e-biking is riding with friends, this is sure to be a popular incentive.
The main purpose is simple: help Americans afford high-quality e-bikes to reduce congestion in our cities, reduce carbon emissions from gasoline-powered cars, and encourage Americans of all ages to enjoy a fun and healthy method of exercise. If passed, this bill would open the door for more Americans to get out and explore the world, commute to work, and enjoy all the freedom of mobility that electric bikes provide.
Himiway A7 Pro | Urban Electric Commuter Bike
-
4-bar
Linkage
Suspension
-
500
W
Mid-Drive Motor
-
Torque
Sensor
-
Hydraulic
Brakes
Which E-bikes Would be Eligible for the Tax Credit?
For E-bikes to be eligible for the Electric Bicycle Incentive Kickstart for the Environment Act, they must meet certain reasonable requirements. According to the latest version of the proposal in the Senate, the e-bike tax credit will be for qualified electric bicycles. A qualified electric bicycle is defined as “a two-wheeled vehicle that is, among other things, equipped with an electric motor of less than 750 watts that is capable of propelling such vehicle.” The bike must meet the legal definition of a Class 1, Class 2, or Class 3 e-bike and achieve speeds no greater than 28 miles per hour (45 km/h).
The collection of current Himiway E-bikes, for example, meets this definition and would be eligible for the tax credit if the Act is passed into law. In addition, the bike must be priced at less than $8,000 to qualify for the e-bike tax credit of 30% (up to $1,500). Himiway E-bikes use a geared hub motor and high-quality Samsung battery to deliver the power you need for all your activities, while still qualifying the bikes for the credit. This e-bike tax credit will be popular amongst those looking for a final reason to ditch their cars forever in favor of such a functional and affordable replacement. With the many different accessories you can use to outfit your Himiway, the ease of making the switch has never been easier.
It’s is important to note that riders who buy an e-bike that does not meet the criteria put forth in the bill would not be eligible for the refund. E-bikes with speeds greater than 28 mph, e-bikes that don’t have pedal-assist, and e-bikes with motor power greater than 750 watts will not be eligible. The price of the e-bike must be less than $8,000 as well.
How to Support the E-Bike Tax Credit
We all eagerly await the next step of making this bill a reality. Both bills (the House and the Senate) must pass before the groups can harmonize both bills and send them for President Biden’s signature. In the meantime, the good news is that you can support the passage of this bill directly! The advocacy group peopleforbikes.org supports the bill. Please click here to encourage your local representative to co-sponsor the bill.
“One of the few positive developments of the last year has been the surge in biking. Communities large and small are driving a bike boom. Notably, electric bicycles are expanding the range of people who can participate and making bike commuting even easier,” said Rep. Earl Blumenauer, the founder and co-chair of the Congressional Bike Caucus.
Regardless of the e-bike tax credit status, knowing that e-bikes provide an excellent alternative for commuting, exercising, and running errands may justify the purchase anyway. Replacing a gasoline car with an e-bike for some or all your trips is a huge cost saver. For more, check out our recent article for helpful tips on commuting in traffic.
Now you know what the E-BIKE ACT is, which bikes are eligible for it if it becomes law, and how to show your direct support for the credit. Remember, join the cause and make your voice heard by signing the online petition to automatically send a note to your congressperson to get behind this electric bike tax credit.
