U.S. Sen. Brian Schatz (D-Hawaii) has introduced new legislation to promote the use of electric bicycles, referred to as "e-bikes," through a refundable consumer tax credit.
The bill, called the Electric Bicycle Incentive Kickstart for the Environment (E-BIKE) Act, would offer those who purchase an electric bike through the program a tax credit up to 30% for the cost of a Class 1, 2 or 3 e-bike, which is up to $,1500, according to Pacific Business News.
"We need to do everything we can to transition to a clean-energy economy. That includes changing the way we get around. Electric bikes help cut pollution and traffic congestion -- we just need to make it easier for people to get on-board. That’s why I authored a bill to make them more affordable: the E-BIKE Act," Schatz wrote in a July 23 Facebook post.
According to a Portland State University study, carbon emissions would drop by 12% if 15% of car trips were made by e-bike, according to Schatz's website.
Pacific Business News said the study also concluded that if 46% of e-bike trips replaced trips by car, it would help to cut down not only on carbon emissions but traffic congestion as well.
E-bike prices range anywhere from $800 to $8,000, and the tax rebates would be able to go towards purchases of e-bikes in the under-$8,000 price range. Joint tax filers would also be able to use the credit for two bikes, one per person, according to Schatz's website.
Cosponsoring the bill is U.S. Sen. Ed Markey (D-Massachusetts), and a companion bill has been introduced into the House of Representatives by U.S. Reps. Jimmy Panetta (D-California) and Earl Blumenauer (D-Oregon).