According to reports, on March 21, the federal government re-proposed the tax deduction bill for the purchase of e bikes. The deduction amount is 30% of the price of electric bicycles, with a cap of $1,500. Last year, the electric bike tax credit was excluded from the Reduce Inflation Act, but this year the federal bicycle tax credit incentive has been reinstated.
Because of the lightness, speed and efficiency of electric bicycles, the use of electric bicycles in the United States has grown steadily in the past few years. Electric bicycles have become a car substitute for many people, but compared with traditional bicycles, the cost of electric bicycles is high, and the cost of low-end electric bicycles The starting price is about 600 to 800 US dollars, and the price of high-end electric bicycles has increased by more than ten times. The high price has become an obstacle for the government to promote low-carbon travel.
In order to lower the purchase threshold, different subsidy policies have been introduced from the federal government down to the state government. The restart of the federal tax credit bill will further accelerate the popularity of electric bicycles and the usage rate in residents’ daily travel. Denver issued more than 4,700 e-bike rebates last year through its e-bike rebate program.
Access to tax credits is conditional
First, e-bikes must be purchased for less than $8,000, double the $4,000 stated in President Joe Biden’s original Build Back Better proposal.
To make the subsidy available to low-income people, the bill caps buyers’ incomes at $150,000 for individual filers, $225,000 for heads of household and $300,000 for joint filers.
For joint couples who buy two e-bikes, each can get one or two credits every three years.
The reintroduced Electric Bikes Act also proposes regulations to help address battery hazards for low-quality bicycles equipped with inferior, potentially dangerous and explosive batteries. The proposed bill would define e-bikes as eligible if they meet battery safety standards established by the Battery Technology Industry Laboratory
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