Up to $1,500 in tax credits proposed for ebike buyers in Biden planComments Off on Up to $1,500 in tax credits proposed for ebike buyers in Biden plan
As part of the Build Back Better proposal, purchasers could get a credit of up to 30 percent against the cost of the bike
A proposed federal tax credit for new electric bike purchases has passed the most recent round in Congress, with the especially positive news being that, following its reduction by the House of Representatives to 15 percent, the credit rate is back to 30 percent.
Ebikes are an invaluable tool in improving not only the health of our planet, but also the general population, and such an incentive could have a real impact on the uptake of electric powered bicycles in the United States. In an country where mass adoption of ebikes is still struggling, such a move has the potential to make a real impact on the population, and on related infrastructure.
All three ebike classes are included as eligible in the incentive, up to a wattage of 750, and with the 30 percent refund capped at $1,500. It is worth noting, that as a fully refundable tax credit, lower-income individuals would be to claim it
As for further details, the proposal would not be applicable to ebikes costing over $8,000, and the 30 percent credit is gradually reduced once the bicycles costs more than $5,000. It is also a means-tested concept, therefore according to tax status, the credit would begin phasing out $200 for every $1,000 spent on the purchase for individuals who earn $75,000, heads of household earning $112,500, and married couples who file jointly earning $150,000.
This would be a welcome move for climate and active mobility campaigners. Indeed, the cause of protecting both our environment and our health naturally go hand in had. With ebikes costing thousands of dollars as standard, such incentives can help to make real progress in these areas and change lives. In reporting on the credit, Verge noted that a recent study found that if 15 percent of car trips were made by e-bike, carbon emissions would drop by 12 percent.
Further benefits found within the lengthy, 1,600 page bill may be welcome news to cyclists, with pre-tax commuter benefits for those who cycle to work or use bikes shares, similar to those which exist for people using park-and-ride or public transit. The proposed bicycle benefit would allow cyclists to get up to 30 percent of the parking benefit — currently equivalent to $81 a month, less than $1,000 a year.