The United States is known for its active involvement in environmental sustainability. The government implements eco-friendly activities across vital economical sectors, including transportation. To encourage the citizens to get involved in eco-transportation, the US government reinstated the electric bike tax credit bill. The government put a price subsidy maximum of $1,500 to support citizens who can’t afford to get an electric bike. However, certain factors determine if you are eligible for the subsidy or not, which are further discussed in this piece.
Key Points of New US E-bike Tax Credit Bill
The original Electric Bicycle Incentive Kickstart for the Environment (E-BIKE) Act was introduced in 2021 as a way to help pay for the cost of electric bikes but was unsuccessfully rolled out across the country. This incentive was recently reintroduced by federal lawmakers with the exact same name two years ago, but with some important differences:
The Electric Bicycle Incentive Kickstart for the Environment (E-BIKE) Act would provide a refundable tax credit of 30 percent of the price of an electric bike, up to a $1,500 limit.
New e-bikes priced under $8,000 will be eligible for a refund -- up from the original $4,000 in President Joe Biden's original Build Back Better legislation.
The new bill also doubles the income limit for the maximum credit -- up to $150,000 for a single filer and $300,000 for joint filers -- to match the EV credit in the Reduce Inflation Act.
Reasons for E-bike Tax Credit Bill in the United States
There are several reasons why the United States provides its citizens with a tax credit bill opportunity. Some of these reasons are for personal purposes, while others serve environmental benefits. Even though the government is so particular about the environmental benefits of placing a tax credit bill on an e-bike, the decision also impacts the riders. Below are several reasons why the United States chose to restart its e-bike tax credit bill.
Encouraging Sustainable Transportation
The United States is known for accommodating several manufacturing industries. As much as this development promotes science and innovation, it could be harmful to the environment. This is particularly true for industries that release a large number of fumes during production. To create a less polluted environment, there should be minimal dependence on fossil fuels.
Research has revealed that an individual impacts the environment greatly by choosing to commute to work with an electric bike, instead of public transportation. Thus, the effect will be massive when a larger number of people choose an electric bike as their mode of transportation. Also, the tax credit bill encouraging more people to adopt electric bikes will reduce noise pollution. For more effectiveness, you may consider investing in chainless electric bikes like Honbike’s HF01 and Uni4. You can conveniently ride amidst top and congested cities quietly.
Promoting Physical Activity
There is a rapid need for physical fitness in society today. The health industry is encouraging people to be more active, especially since remote works are on the rise. Thus, the government also encourages people living a sedentary lifestyle to commute with electric bikes at every given chance. This is to reduce the risk of complicating health diseases, especially cardiovascular-related illnesses. In the long run, it will play a positive role in reducing government expenditure on the public health system.
Providing a tax credit for electric bicycles will encourage more people to live a healthy lifestyle. Since anxiety and depression is on the rise, individuals need to form social connections through riding. Thus, when access is given to society to buy an electric bike at a cheaper price, there is a higher chance of making new and meaningful connections. The high rate of type-2 diabetes in society has unfortunately grown to become a global concern.
Reduces Cities Congestion
Urban areas are usually faced with a large number of transport systems and commuters on the streets. This often leads to traffic congestion, preventing full-time employees from reaching their workstations early. Unfortunately, this affects work productivity, which largely influences the economic state of the country.
E-bikes are a flexible mode of transportation, reducing the number of people who need to use the public transport system. This will provide a solution to people who are hesitant about using the public transport system, due to certain health restrictions. Since electric bikes are portable in size, they don’t require large parking spaces like vehicles. This makes them a practical alternative for short distances, especially when you don’t want to be stuck in traffic.
The Future of Cycling in the United States
Even though companies like Tesla are introducing electric vehicles, their adoption is not widespread as electric bikes. This is largely due to the high cost of owning an electric vehicle, compared to an electric bike. This reduces its accessibility, especially to low-income earners. Also, electric bikes are considered more flexible, allowing riders to easily find their way through the city.
Research has shown that the electric bike market bloomed in 2020 when the pandemic era was over. The bike production rate exponentially increased from 10 million in 2020 to 30 million in 2022. The number may also triple in the nearest future, as the United States government keeps investing in biking infrastructures. Some of these infrastructures include protected bike lanes, bike-sharing programs, and multi-use trails. These designated lanes give a special advantage to cyclists over drivers. By doing so, there would be continued investment and interest in the use of electric bikes in the United States.
The rise of bike-sharing and micro-mobility in the United States also implies cycling had a promising future in the country. When more cities adopt these programs, it will reduce the congestion rate and improve air quality. This will also help to easily curb diseases that are spread through human contact or airborne. The availability of bike-sharing programs also encourages short distances trips within the country.
Restarting the e-bike tax credit bill has proven to boost cycling adaptation. Cycling has become more accessible to people, such that individuals earning low-income can begin to consider owning an electric bike. This also creates an opportunity for a large number of people to participate in eco-lifestyle. Overall, introducing an electric bike price subsidy promotes sustainable transportation, improves health, reduces emission, and stimulate economic growth. Since the United States government is getting more involved in eco-activities, the citizens can expect more incentives in the future.