Proposed EBIKE Act Offers 30% Tax Credit for E-Bike Purchases
California Congressman Jimmy Panetta introduced the Electric Bicycle Incentive Kickstart for the Environment (E-BIKE) Act to encourage electric bicycle use through a consumer tax credit.
The E-BIKE Act
The E-BIKE Act creates a consumer tax credit that:
- Covers 30% of the cost of the electric bicycle, up to a $1,500 credit
- Applies to new electric bicycles that cost less than $8,000
- Is fully refundable, allowing lower-income workers to claim the credit
“E-bikes are not just a fad for a select few, they are a legitimate and practical form of transportation that can help reduce our carbon emissions,” said Congressman Panetta.
“My legislation will make it easier for more people from all socio-economic levels to own e-bikes and contribute to cutting our carbon output. By incentivizing the use of electric bicycles to replace car trips through a consumer tax credit, we can not only encourage more Americans to transition to greener modes of transportation but also help fight the climate crisis.”
Electric Bikes: an Eco-Friendly Alternative to Vehicle Trips
E-bikes are a great alternative to vehicle trips and commutes. They’re easy to use and can travel greater distances in less time compared to conventional bikes.
If e-bikes replaced 15% of car trips, carbon emissions could drop by 12%, a recent study found.
Congressional Bike Caucus Chairman Earl Blumenauer co-founded the bill along with Congressman Panetta.
“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 Blumenauer. “I look forward to working with Congressman Panetta on this important expansion of cycling opportunities.”
Support the E-BIKE Act
The e-bike act would relieve 30% of the cost of a new electric bicycle (up to $1500) for consumers. You can show your support for a federal tax credit for electric bikes by using this easy form to encourage your representative to co-sponsor the bill.