E-bikes are great for the environment, for improving health, for saving money, and for reducing congestion. Win-Win-Win-Win!
FABB encourages all riders and everyone concerned about the environment and transportation to write your representatives in Congress and ask them to support the recently introduced E-BIKE (Electric Bicycle Incentive Kickstart for the Environment) Act.
This legislation creates a tax rebate for people buying electric bikes similar to the tax incentive for buying an electric car. The act also would encourage more people to replace car trips with environmentally friendly, healthy, and money saving bike trips.
An electric bicycle tax credit was included in the House-approved Build Back Better Act in 2021, but unfortunately, this provision did not make the cut in negotiations as that package evolved into the Inflation Reduction Act (IRA). Now law, the IRA is the largest climate policy package in American history, but to quickly and effectively take action on reducing emissions, Congress must consider the E-BIKE Act as an essential and complementary policy.
The E-BIKE Act (H.R. 1685/S. 881) creates a tax credit that:
- Accounts for the purchase of one e-bike for single filers, or two for joint filers
- Provides a rebate for 30% of the cost of a new electric bicycle, up to a $1,500 credit.
- Allows lower-income workers to claim the credit. Individuals without tax liability can still receive the tax rebate.
- Includes an income limitation of $150,000 for a single filer, $225,000 for head of household, and $300,000 for joint filers.
- Includes language that limits eligible e-bikes to ones with tested battery systems and which meet one of the Three Class Definitions for e-bikes used by most states.
- Prevents fraud by requiring manufacturers to provide a VIN that retailers report to the IRS upon sale.
There are two easy ways to send a message of support automatically to Congress and FABB’s recommends using both:
According to PeopleForBikes, electric bicycles keep people moving with efficiency and ease, no matter their age or physical abilities. Studies show that across the United States, we can expect an 11% decrease in carbon emissions with a 15% increase in electric bicycle mode share. In Denver, a successful and popular e-bike voucher program over the past year led to 71% of recipients using their cars less after purchasing an e-bike, with 90% riding weekly. An all-in approach to reducing carbon emissions must recognize the power electric bicycles have to take cars off the road while keeping people moving, active, and connected to their communities.
Don’t wait! Act today and help FABB and these two great national organizations build support for the E-BIKE Act and enact a federal level e-bike incentive that prioritizes electric bicycles as a zero-carbon mode of transportation that is affordable and accessible for all Americans.
