Domestic politics in the USA currently know only one topic – US President Joe Biden’s Build Back Better Act. The package of measures is intended to revive the economy of the world power, but in an environmentally friendly way. One of the many pieces of the puzzle is ebikes. Biden wants to promote their use in society through tax incentives.
A handsome bonus for the purchase of new ebikes
For private individuals, the purchase of a new ebike could soon become significantly cheaper. Up to 30 percent of the amount paid is to be refunded to people via a credit spread over a period of five years. The maximum refund is likely to be 1,500 US dollars. According to the US technology portal “The Verge”, this would be an extremely important step, as ebikes are currently still struggling for popularity among the general public. The idea is that the subsidy would apply to class 1, 2 and 3 ebikes. This means that the motor power is limited to a maximum of 750 watts.
Does US President Joe Biden like cycling? In any case, he wants to financially support bicycle purchases with the Build Back Better Act.
The so-called Electric Bicycle Incentive Kickstart for the Environment, or E-BIKE Act for short, contains further limitations. For example, private individuals may only benefit from the full scope of the incentives as long as their desired ebike does not cost more than 8,000 US dollars. For anything above that, the subsidy gradually decreases by 200 US dollars for every 1,000 US dollars. In addition, how much the buyers earn plays a role. If it is more than 75,000 US dollars gross per year, individuals cannot claim the rebate. For married couples, the assessment limit is a joint income of more than 150,000 US dollars per year.
Cycling generally considered eligible
The more than 1,600-page Build Back Better Act also includes a Bicycle Commuter Act. It involves plans for how the US government will use federal funds to support people who commute to work by bike or have a proven record of using bike-sharing. Those who park their cars in designated park-and-ride lots and travel from there, for example by public transport, can also hope for financial relief. The state would pay them back up to 30 per cent of the parking fees. The proposed caps are $81 per month and $1,000 per year.
“We’re pleased to see the E-BIKE Act and the Bicycle Commuter Act advance past another legislative hurdle. As the Biden Administration aims to reduce emissions and transform transportation trends in the United States with the Build Back Better Act, investments that make it easier to purchase and ride bicycles and e-bikes are critical”, Noa Banayan, director of federal affairs at PeopleForBikes, told news portal BicycleRetailer.
Soon to be cheaper? E-bikes are already attracting increasing interest, especially in cities.
Final decision still pending
As recently as September, the Committee on Ways and Means, a committee of the House of Representatives, had wanted to cut the purchase bonus envisaged in the E-BIKE Act by half to a maximum of 15 percent. In the end, President Biden’s proposal must be passed by both chambers of Congress. In the House of Representatives, the Democrats currently have a majority of eleven seats with 222 to 211. In the Senate, both Democrats and Republicans have 50 seats each. In the event of a standoff there, the vote of Democratic Vice President Kamala Harris will decide.
Pictures: Propel; Council for Exceptional Children (CEC)
My name is roand I’m 64 years old. I don’t have a vehicle. I would like to know if I could qualify for an E bike regarding the subsidy tax credit.
Hello Roland,
In March 2023, a revised version of the Ebike Act was introduced to Congress. We do not know whether the proposal has been passed in the meantime. Organisations such as PeopleForBikes or the League of American Bicyclists can tell you. They supported the proposal and are certainly informed about the current status.
The credit considers supporting the purchase of an ebike that costs a maximum of $8,000. To qualify for the full credit of a maximum of $1,500, a single person’s income must be less than $150,000 and a married couple’s income must be less than $300,000.
However, a number of cities and states have now also introduced their own local versions of a tax credit for ebikes. So you can check in parallel to see if this might apply to your city or state.
Cheers, Matthias
I am 64 years old. I used to jog every other day. I like to be active and productive in life again. I would like to know if I’m eligible for an E bike I do my best to take care of myself healthwise my name is Roland