Tax credits for buying electric and hybrid vehicles have been around for years now, are a proven motivator to encourage drivers to purchase cleaner cars, and have saved many millions of tons of carbon dioxide from belching into the atmosphere. They’re great, the tax credits.
But for a long time now, right about when I got my first cargo e-bike, I’ve wondered: Why are we giving tax credits of up to $7,000 for cars to slightly offset the purchase price of a hugely expensive car when we could give tax credits for purchases of e-bikes that could pay for the entire bike? The main roadblocks preventing non-avid cyclists from trying out an e-bike, especially a cargo version that can largely replace a car, is the cost. A tax credit pulverizes that road block to dust. A no brainer.
Finally, a meaningful attempt at such legislation is here.
The Electric Bicycle Incentive Kickstart for the Environment (E-BIKE) Act, sponsored by Jimmy Panetta (D-CA) and Earl Blumenauer (D-OR), would give tax credits of $1,500 for any new e-bike purchase. It could be used once per person every three years.
“There is an incredible benefit to the health of people and the planet when we opt for a bike ride over a car ride,” said Mike Sinyard, Specialized CEO and Founder in a letter to Congress in support of the act. “Electric bikes serve as a more accessible means for reliable transport, commuting, recreation, and fitness and have a proven impact on reducing carbon emissions,” said Mike Sinyard, Specialized Founder and CEO. “Specialized is an avid supporter of the proposed federal tax incentive put forward by the E-BIKE Act. Whichever e-bike riders choose, we believe that encouraging more bike trips is a critical part of fighting the climate crisis.”
I picked up a fridge at Home Depot. pic.twitter.com/TxeB4dOEhs
— Bayley Vanderpoel (@BayleyVan) February 14, 2021
This has the potential to be a watershed moment in terms of transportation emissions, and a radical reshaping of how people move about through our towns and cities.
The individual part of the bill means multiple family members could get them at once. Re-upping every three years means you can take advantage of newer technologies as batteries and motors continually improve. The rush of people buying e-bikes would fund more and better designs.
If I could add one more piece to this legislation, I’d bump up the credit to $2,000 or even $2,500 for a cargo e-bike. These are the machines that have the bigger opportunity to get people out of cars for daily errands. They also often cost at least $3,000 or $4,000.
A bill like this should have bipartisan support, and very likely might. But the fossil fuel industry basically employs half of Congress, so there could be more foot dragging than you’d hope. To encourage your Congressional representative to support the bill, head here.
Photo: Justin Housman
So this is pretty awesome, but why no credit for plain ol’ pedal-power bikes? Plenty of folks have been rocking non-e cargo, utility, and transportation bikes with great success for years now. They’ve shown that not everyone wants a high-powered e-bike to meet their neighborhood grocery needs. Since those bikes are also offsetting fossil fuel trips (and are way “greener” than anything with a battery) shouldn’t they qualify too?
Agree 100%
I’d guess the thinking would be traditional bikes don’t cost nearly as much and don’t have the potential to get non-traditional riders out of cars the way e-bikes do.
Totally agree with RideSEA.! ebikes are fine in urban settings but the user rules are a mess with the forest service. We don’t need more ebikes where they don’t belong.
This legislation is not aimed at e-mtbs.
Is there anything in the legislation that prohibits e-mtb? As someone who’s been advocating for everyday biking for a decade, I’ve been saying for years that “anything can be a cargo bike.” Could someone strap on a $30 Wald and get the tax break?
It’s a really good question. I’m reaching out to the legislators to get some more background. We’ll do a follow up.
The Democrats controlled by the oil and coal interests are the ones to be most concerned about.
Yet would be a huge selling point to subsidize the 5-10K emtb market. For bikes that will be driven to the TH.
ebikes, and all bikes, are being sold as fast as they can be delivered. There really seems to be no need for a tax credit for any of them.
So, when do we get a tax credit for our human-powered bikes?
Let me this fair electric bikes mmmm not a fan but I do love cycling I just bought a new road bike I should get tax credit too ..
I agree with RideSEA – This proposal completely misses the mark by omitting standard bicycles (trikes etc). The photos in the Twitter example show someone picking up a fridge—not all that special in any “developing” country—are we now too good to pedal without electric assistance? Do we need yet another tax break that completely disregards the less wealthy people of our country?
We’re not going to see meaningful changes in the USA until subsidies for petroleum and motor vehicles take a dive. Few people understand the mega funds that are taken from taxes and driven back into our transportation system.
This is unbelievable. What about the people that have been commuting to work for decades using pedal power?! E-bikes suck up power from the grid, which is usually fueled by fossil fuels. And then every 3 years you get a new bike? So our landfills are going to be filled with carbon fiber and dead motors because these things aren’t recyclable. What a joke
The idea is to get people who are less likely to use a regular bike out of their cars because e-bikes are faster, require less fitness, and can carry cargo effortlessly.
I applaud any ideas to get people out of their cars but I worry if such a single-focus on tax breaks for e-bikes is all the bill has to offer?
@JustinHousman – Is there a corresponding portion of funding for infrastructure and education? My personal experience here in Seattle over the years has seen a huge growth in first cargo bikes, then e-cargo bikes. Growth is awesome but our infrastructure here is really feeling the pinch with so many more people riding, and (I hate to be that guy but…) riding poorly and/or at speeds beyond their abilities.
Because of this experience, I have a bit of worry that some of the people who are attracted to “tax-break e-biking” may lack the riding experience necessary to make fast e-biking “immediately” safe for themselves or other trail users. Training and education funds could be a huge help for this. I’m not trying to be a gatekeeper and enforce “my idea” of biking, but there’s something to be said for becoming organically part of a local riding community and (slowly) learning the local norms that make managing overcrowded resources (trail systems, etc) more comfortable and safe for everyone. Unfortunately, the instant ability for speed and distance that comes easily with e-bikes can bypass this natural learning curve and create a pressure point when spaces are tight.
Making sure there’s a substantial amount of money for education and infrastructure that could benefit ALL bike riders (e-or-not) is one way this bill could be responsibly enacted.
And the price of e-bikes will jump by $1,500 in 3..2..1..
(Electric cars dropped in price by the amount of the tax credit when it expired. You see, capitalism dictates that things are already priced at what people will pay).
I would completely sign any petition to get this bill going through and while we have a lot of the dead animal fuel lobyists padding the pockets of many Washington DC folks. I think it would have a lot of steam going forwards noticing all the change that is supposedly happening. There are already programs through many corporations already to help with both the purchasing of or maintaining bicycles so that’s already happening.
Just one clarification here. The tax credit is not $1500 straight up. It’s 30% of the cost of your ebike with the maximum credit being $1500. https://panetta.house.gov/media/press-releases/congressman-panetta-introduces-e-bike-act-encourage-use-electric-bicycles-and#:~:text=The%20E%2DBIKE%20Act%20creates,workers%20to%20claim%20the%20credit
I have no interest in funding the acquisition of motor bikes for people unless they are truly utility bikes that get cars off the road. The majority of “e”-bikes are mountain bikes and these do nothing for the cause of getting cars off the road. Further, I would not support this bill unless the utility bikes are made in the USA, we need to employ people in the US with these type of bills. All so short sighted…
A bigger tax credit for e-cargo bikes, so that more two car families can go to single car families. E-cargo bikes allows the kiddo’s to come with me without worrying about them (3 and 6, both happy on two wheels) not listening and getting hit by a car (and yeah, more segregated bike trails would be so good with the kids at the age they are now).
The three year roll over worries me. I would add a requirement that the manufacturer warranty the battery/motor for 5 years of any e-bike purchased under the scheme. I get it that a new e-bike every 3 years for 12 years will still pollute less (cradle to cradle) than a single electric vehicle that lasts 12 years, but still … a new utility bike every 3 years seems very consumerist.
If this comes through, I will be very interested in a cargo e-bike first round (and downsizing to just one car), then perhaps e-mtb or e-commuter second round.
Tesla now has a market cap exceeding Ford, GM and Chrysler/Fiat and good old Elon edged out Bezos for the world richest man. Tesla’s entire product line is subsidized by tax credits you and I pay for. Why is this necessary and double why for an electric bicycle?
Every bike store in America can’t find enough product to sell, we don’t need to goose demand at all.
@Matt – https://www.cnn.com/2019/06/28/business/tesla-tax-credit-loss/index.html
“The federal tax credit for Tesla buyers falls by 50% on Monday and will be eliminated altogether at the start of 2020.
…
Buyers of plug-in vehicles, both pure electrics and plug-in hybrids, are eligible for a $7,500 credit that reduces their federal taxes by that amount. But once a manufacturer has sold 200,000 of those cars to US buyers, the credit starts being phased out.”
Totally Tesla benefitted from the tax credits driving sales, but as far as I’m aware, they’re all gone now for Tesla.
I’d still like to see way way way more people on e-cargo bikes. I’ve not seen a single one, and my son’s school has a catchment area of at most 2 miles in each direction. 90% of people drive to get their kids, maybe 95%. E-cargo bikes should be a common site, and if some tax credits are needed for that, then I support that.
Yes, agreed. This seems like a terrific solution. I live in one of the bike capitals of the country and I still only see a few cargo bikes each day, electric or otherwise.
Hey everyone, instead of complaining and defaulting to whataboutism with regards to regular pedal bikes you could have spent some time researching and finding out that the Bicycle Commuter Act (which didn’t pass back in 2019) is being reintroduced and benefits everyone who regularly commutes by bicycle (regular or ebike or bikeshare)
So you know, you could complain about this tax credit or you could try to push your representatives to pass the Bicycle Commuter Act. Whatever.
@Simon. I don’t think this is a case of whataboutism nor is it complaining. My problem with this legislation is that while bicycles are a fantastic transportation solution, this seems like a case of picking one “winning” technology ( motorized bikes) while ignoring the value of encouraging basic pedal bikes and accompanying education and infrastructure. A bill like this could lift all tides if written/presented correctly but as-is, it’s a gimmie to the ebike industry and people who have already decided they want a motorized bike.
As for the Bicycle Commuter Act (vs. a straight tax break) — one problem with it is that it is a tax break for an employer-offered benefit. Your employer has to choose to offer it. If they aren’t feeling generous (and/or don’t want to do the paperwork), then the “employee” doesn’t get it. Additionally, at least the way the previous act was written, it it leaves out gig workers, part time workers, stay at home parents, or people who don’t “commute” to work, and the like. What if you’re a stay at home parent and want to use a bicycle to replace a car for errands and groceries? The Bicycle Commuter Act won’t help (and nor will this bill, unless that person wants to buy a subsidized ebike).
I dunno know, maybe these bills could be combined into one (with added monies for education and infrastructure as long as I’m dreaming). But I imagine the e-bike lobbyists won’t go for that.
If a cargo bike costs $3,000-4,000, why wouldn’t you want for a $3,000-4,000 credit?