According to reports, on March 21st, the federal government reintroduced a tax relief bill for purchasing electric bicycles, with a maximum amount of $1500 and a reduction of 30% of the price of electric bicycles. Last year, the electric bicycle tax credit bill was excluded from the Inflation Reduction Act, but this year the federal government has restarted the bicycle tax credit incentive.
Due to the portability, speed, and efficiency of electric bicycles, the use of electric bicycles in the United States has steadily increased in the past few years, and electric bicycles have become a car substitute for many people. However, compared to traditional bicycles, the cost of electric bicycles is high. The starting price of low-end electric bicycles is about 600 to 800 dollars, and the price of high-end electric bicycles has more than doubled. 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 to the state government. The reactivation of the federal tax credit bill will further accelerate the popularity of electric bicycles and their use in daily travel among residents. The electric bicycle tax rebate plan implemented in Denver last year provided tax rebates for more than 4700 electric bicycles.
Obtaining a tax credit is conditional
First, the purchase price of an electric bicycle must be less than $8000, double the $4000 stated in President Joe Biden's original Build Back Better proposal.
In order to allow low-income people to receive subsidies, the bill imposes restrictions on the income of buyers. The annual salary limit for individual applicants is $150000, for household heads is $225000, and for joint applicants is $300000.
For co branded couples who purchase two electric bicycles, each person can receive a credit once or twice every three years.
For low-quality bicycles equipped with inferior, potentially hazardous, and explosive batteries, the reintroduced Electric Bicycle Act also proposes regulations to help address battery hazards. The proposed bill defines electric bicycles that meet the battery safety standards established by the battery technology industry laboratory as qualified.
After the previous stagnation of federal incentives for electric bicycles, many cities and state governments have also begun to develop local incentive plans. The following is a summary of U.S. state subsidy plans.
California
California provides up to $1000 for regular electric bicycles and up to $1750 for freight or adaptive electric bicycles
Contra Costa County can apply for savings of up to $300 to purchase a new electric bicycle
Contra Costa County is at least 18 years old, meets income requirements, and lives in a designated county. Buying an electric bicycle can earn $500
Heldsburg provides eligible electric bicycle rebates of $50-700 to Heldsburg Electric customers
The City of Reading, California, that meets the income criteria and participates in the residential energy discount program will receive a voucher of up to $1150
Santa Cruz plans to provide $800 to eligible low-income residents and $400 to non low-income residents
Colorado
Avon can receive up to $200 as a free purchase of a new electric bicycle valued at $1000 or more
Denver can save up to $1700 by applying for an electric bicycle
Connecticut gets a rebate of $500 for purchasing an electric bicycle, and the price of the electric bicycle must be $3000 or less
Hawaii provides residents with 20% rebates for electric bicycles, up to $500
Massachusetts offers refunds of $500 to $750 for electric bicycles based on residents' income status
New York State plans to provide a 50% rebate for purchasing electric bicycles, up to $1100
Oklahoma provides a $200 tax credit for eligible new electric bicycle purchases
The basic tax refund for Nashville electric bicycles is up to $300, and the maximum tax refund for freight electric bicycles is up to $500. Revenue eligible tax rebates for electric bicycles or freight electric bicycles can reach up to $1400
Washington, D.C. provides local residents with a discount of 75% of the cost of bicycles or up to $1200 or 75% of the cost of bicycles.
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