House Representatives Panetta & Blumenauer introduce "e-bike Act" federal tax credit

On February 9th, 2021, Congressman Jimmy Panetta and Congressional Bike Caucus Chairman Earl Blumenaur introduced the Electric Bicycle Incentive Kickstarter for the Environment Act to the United States House of Representatives. The proposed E-BIKE act has been submitted in order to kickstart and encourage increased demand for electric bikes by way of a tax credit for all United States citizens.

The proposed bill, if passed and signed into law, would result in a full refundable tax credit for those who take advantage of the proposed legislation. While the full rules and regulations surrounding the bill are currently being debated by congress, the following restrictions are part of the current bill:


  • The proposed bill would cover 30% of the purchase price of a single eBike once every three years, or twice for joint-return couples who are buying two electric bikes.
  • The new electric bike must cost less than $8,000 dollars.
  • A $1,500 dollar refundable tax credit is the maxed amount that can be awarded per bike. As such, you would receive the same credit for a $5,000 dollar eBike as you would for a $8,000 dollar eBike.
  • This is a fully refundable tax credit. Up to $1,500 dollars can be subtracted from what you owe to the government the year you purchase your eBike. If the total tax credit awarded is more than the taxes you owe, the government will pay you the excess amount.
  • The Internal Revenue Service, or IRS, will be mandated to deliver a report regarding the financial results of the proposed bill after two years. Additional adjustments may be made to the legislation based upon the findings, income tax bracket distribution, and equity of the proposed bill.
 
B

BarryS

Guest
So Panetta and Caucus are in the pockets of the E-bike lobby ? After all why a credit for E-bikes ?? I assume due to batteries ? Not using gas ?? How would they monitor who has used their Bike after purchase. Where prior used their car ?
 

Chapooski

New Member
"....bike must cost less than $8,000 dollars"
"..........the same credit for a $5,000 dollar eBike as you would for a $8,000 dollar eBike."
Last time I checked $8,000 was equal to $8,000 and not less than $8,000.
 
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Timpo

Well-Known Member
"....bike must cost less than $8,000 dollars"
"..........the same credit for a $5,000 dollar eBike as you would for a $8,000 dollar eBike."
Last time I checked $8,000 was equal to $8,000 and not less than $8,000.
Oh yeah that's right 🤔

So if you want a $8,000 ebike.. I guess you are going to have to negotiate the price down to $7,999.99 in order for you get the tax credit.
 

Ken M

Well-Known Member
How can they tie this to the 3-class system when CPSC controls ebikes thru 1st sale and many states don't even utilize the 3-class ebike table? I support the tax incentive but tying it to the 3-class system is just brain-dead.
 

FlatSix911

Well-Known Member
Region
USA
City
Silicon Valley
How can they tie this to the 3-class system when CPSC controls ebikes thru 1st sale and many states don't even utilize the 3-class ebike table?
I support the tax incentive but tying it to the 3-class system is just brain-dead.
My read of the bill is that it includes all classes of EBikes... take a look below. 😉

 

Ken M

Well-Known Member
My read of the bill is that it includes all classes of EBikes... take a look below. 😉


The 3-class system is a state by state usage law. The CPSC owns thru first sale and it has one federal definition of a compliant ebike.

I have been trying to bring awareness to the fact that some bikes, like the Polaris / PIM models with throttles, that are not compliant to the 3-class table yet are compliant for sale and I think that was not intended. No one wants to think that PFBs could have made a mistake but I believe they did.

The tax incentive should be referencing the CPSC definition because that is the low speed electric bikes being sold nationally.
 

Asher

Well-Known Member
Seems more like America buying China....on credit. Maybe I´ll buy a bunch of cheap, gutless ebikes
from walmart, give ´em away, & keep the rebate.
Plus Taiwan (Merida, Giant, et al), Korea (Samsung, LG batteries) and Japan (Shimano, Yamaha, Panasonic).