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A invoice to create financial incentives for e-bike purchases already does one factor properly: making an acronym out of the phrase e-bike.
The Electric Bicycle Incentive Kickstart for the Environment Act first arrived in Congress in 2021. Like most payments that come to America’s legislative chambers, it by no means handed into regulation. But 5 politicians and bike trade advocates hope that 2023 would be the yr Americans get tax credit for getting electrical bicycles, in line with a press release from trade advocate FolksForBikes.
For the invoice’s sponsors, getting extra automobiles off the highway is a transparent win for lowering reliance on fossil fuels.
“Transitioning to a clean energy economy includes changing the way we get around. That means transit, rail, and electric buses, cars, and bikes. Our bill will make it more affordable for working people to buy an e-bike and help get cars off the road,” stated Senator Brian Schatz, chairman of the Senate Appropriations Subcommittee on Transportation, Housing and Urban Development.
Other invoice supporters embody Representatives Jimmy Panetta (California), Earl Blumenauer (Oregon), Mike Thompson (California), and Adam Schiff (California).
Bill: $1,500 Credit for E-Bike Purchase
The E-BIKE Act hasn’t actually modified from its 2021 model, in line with FolksForBikes.
It proposes a refundable 30% tax credit score for buying an electrical bicycle — as much as a $1,500 credit score for brand spanking new bicycles that price lower than $8,000. The credit score could be allowed as soon as per particular person each three years or twice for a joint-return couple shopping for two electrical bicycles.
There’s one addition to the 2023 invoice, nevertheless: earnings caps. These limits parallel the electrical automobile tax credit score caps. That means no tax credit score for these with an annual wage of $150,000 for single filers, $225,000 for heads of households, or $300,000 for these submitting collectively. The invoice additionally mandates a report from the IRS after two years to grasp the distribution of the credit score by earnings tax bracket and alter for fairness sooner or later, in line with FolksForBikes.
An electrical bicycle tax credit score was included within the House-approved Build Back Better Act in 2021. But legislators reduce the supply when negotiations resulted in a brand new invoice referred to as the Inflation Reduction Act.
“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,” FolksForBikes wrote.
Local Governments Take Action
While the federal authorities has stalled, some states and cities have launched their very own e-bike incentives.
Denver began an e-bike voucher program in 2022, leading to 4,734 residents shopping for electrical bicycles. Local officers say they’ve already seen outcomes. According to a joint report from the town and bike teams, about 71% of program members drove much less after the acquisition. Furthermore, 90% stated they rode the bike not less than weekly.
“The success of the Denver rebate program — and its clear impact on reducing transportation emissions — suggests that policymakers need to take e-bikes much more seriously as a climate action tool,” Ben Holland, city transportation supervisor on the Rocky Mountain Institute, which collaborated on the report, stated in a press release.
Electric bicycles assist democratize our streets and make energetic transportation an possibility for extra Americans, FolksForBikes stated. The group is asking supporters to signal an internet petition demanding passage of the E-BIKE Act.
“The E-BIKE Act rightfully positions electric bicycles as a critical part of a larger solution to climate change and equitable mobility,” stated FolksForBikes CEO Jenn Dice. “We’re grateful to our climate leaders in Congress leading the charge on e-bikes.”
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