Everything to Know About the ‘E-Bike’ Act
Replacing 15% of car trips with ebikes could reduce transportation-based CO2 emissions by 12%, according to an October 2020 study. That significant reduction in carbon dioxide emissions provided the impetus behind this new proposition; the Electric Bicycle Incentive Kickstart for the Environment (E-BIKE) Act.
Introduced by Congressman Jimmy Panetta (California) and Earl Blumenauer (Oregon), the legislation would create a new consumer tax credit that would cover 30% (up to $1500) of the cost of an ebike. On a TUOTEG CNQR ebike, for an example, that would be $510 off!
We’re already in the throes of tax season, so it may be a good time to revisit: what the heck is a tax credit anyways? You can subtract a tax credit directly from the total amount of tax owed. This is different from a deduction, which reduces the amount of taxable income. In other words, the tax credit makes owning an ebike easier for folks with lower incomes, as it’s fully refundable. If the tax owed to the government is $500, submitting a tax credit for $1500 will get refunded $1000.
The addition of an electric motor to what is already arguably the most efficient mode of human transport makes electric bikes perhaps the first truly viable replacement for [most] car trips. The vast majority of car trips take place within just a few miles of a person’s home! Those short trips to the coffee shop or to work are certainly easier to make—and more pleasant—on an ebike.