U.S. Sen. Brian Schatz (D-Hawaii) is committed to increasing the use of electric bicycles or e-bikes to give people more environmental and cheaper transportation options and has reintroduced the Electric Bicycle Incentive Kickstart for the Environment (E-BIKE) Act.
The legislation includes a refundable consumer tax credit for e-BIKE owners.
“Transitioning to a clean energy economy includes changing the way we get around," said Schatz in a release from his office. "That means transit, rail, and electric buses, cars and bikes.
"Our bill will make it more affordable for working people to buy an e-bike and help get cars off the road,” added Schatz, chairman of the Senate Appropriations Subcommittee on Transportation, Housing and Urban Development, according to the release from his office.
E-bikes, according to the release, are increasingly being used around the country as a cheaper, more environmentally-friendly transportation option for short trips and daily commutes. E-bikes are also an effective method to help break the cycle of fossil fuel use.
According to the release, Portland State University issued a recent study that found if 15% of car trips were made by e-bike, carbon emissions will drop by 12%. Another survey, according to the release, also found that e-bikes are an effective tool to achieve the tandem goals of reducing traffic congestion and carbon emissions.
While the advantages of using e-bikes are evident, the cost remains a barrier for many potential customers. Prices for e-bikes range from $800 to $8,000 depending on battery quality and size.
Although the U.S. has a current federal tax credit for consumers who purchase an electric car, there is no current federal credit for e-bikes.
The E-BIKE Act creates a consumer tax credit that covers 30% of the cost of class 1, 2, or 3 e-bikes, up to a $1,500 credit.
It applies to new electric bicycles that cost less than $8,000, includes cargo e-bikes, permits the purchase of one e-bike for single filers, or two for joint filers, is fully refundable, allows lower-income riders to claim the credit and includes electric tricycles or “e-trike,” which can be beneficial for people with disabilities.
The E-BIKE Act is cosponsored by U.S. Sen. Ed Markey (D-Mass.). Companion legislation has been introduced in the House of Representatives by U.S. Reps. Jimmy Panetta (D-Calif.), Earl Blumenauer (D-Ore.), Mike Thompson (D-Calif.), and Adam Schiff (D-Calif.).