Democratic lawmakers have introduced a bill that would offer a tax credit of up to $1,500 for electric bicycle buyers.
The Electric Bicycle Incentive Kickstart for the Environment Act, also known as "E-BIKE Act", was introduced in March and is sponsored by Rep. Jimmy Panetta (D-Calif.).
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The bill is a revamped version of a 2021 legislation that was eventually cut out of the final draft of the 2022 Inflation Reduction Act.
"Many people are looking to get out of their cars and get on to e-bikes not just for recreation, but also for transportation purposes," Panetta said in a statement. "By incentivizing Americans to own and use e-bikes, we are allowing them the chance to help improve the quality of life in our communities and tackle the climate crisis in our country."
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According to the Light Electric Vehicle Association, an organization that promotes the sale of EVs nationwide, electric bikes are becoming increasingly popular around the world. In the U.S. alone, e-bike sales are outpacing electric and hybrid cars combined.
E-Bike tax credits have already been introduced in some cities across the country. In Denver, residents can already apply for a rebate of up to $1,200 per person. The rebate was so popular the city had to pause the program to catch up with demand, the Washington Post reported.
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Other cities like Austin, Texas, and Ann Arbor, Michigan, also offer similar programs.
So, who qualifies for the E-Bike tax credit?
The 2021 proposal only allowed those who earned under $75,000 a year (or $150,000 for couples) to obtain the tax credit for bikes that cost less than $4,000. However, the 2023 version allows anyone who earns up to $150,000 a year (or up to $300,000 for couples), to obtain a tax credit of 30% off, or up to $1,500.
The credit also applies to e-bikes that cost less than $8,000.
Will the legislation Become Law?
While this year's bill has more bipartisan support, Democrats will need to be joined by some of the House-controlling Republicans to pass it to the Senate.
The bill remains in its early stages in the House of Representatives.
