A Guide to Understanding Electric Bike Tax Credits
Green living is the future. Anybody in our modern age knows the significance of continuing sustainability efforts. As activist Julia Butterfly Hill once said, “You have to hold yourself accountable for your actions, and that’s how we’re going to protect the Earth.” Many green practices, approaches, and strategies have been developed to encourage eco-friendly lifestyles and help solve climate change. One well-known viewpoint is that of green transportation that ditches traditional forms of gas-powered transit.
Many are familiar with the electric car industry, but a wider range of mobility options exist, including e-skateboards, e-scooters, and e-bikes. Electric bikes are not a recent concept by any means. The initial technology was used by various developers since the 1800s, making the invention over a century old. That being said, the e-bike industry has grown exponentially in scope, size, and scale over the decade.
For that reason, recent legislation has come about to make e-bike riding an even more incentivized investment. E-bike tax credits are a major milestone for a niche market sector that scantily existed in the country not too long ago. Let’s take a closer look at what these types of benefits could mean for current, new, and future e-biker owners. Here is a general guide to understanding electric bike tax credits.
The Rising Popularity of E-Bikes
Why would purchasing an e-bike provide a rider with boosted benefits? Generally speaking, commuting via a bike has always had its own perks and advantages. Yet, e-bikes are unique in their design and configuration as zero-carbon transportation. They continue to help deal with the ongoing climate crisis as vital modes of technological advancement.
Compared with traditional bicycle models on the modern market, cyclists still get that nice workout and a pleasant riding experience. The icing on the cake is the extra bonus of electrified assistance along the way. Power assist allows riders to vary their intensity levels and adjust bike settings to fit their speed and applications. As follows, market analysis indicates that over half of the industry's current consumers are choosing electric bicycle models.
Possible Car Replacements
As more than mere toys, e-bikes offer superior functionality and convenience as a wonderful way to get around town. These bikes are keen automotive replacements—in the right location, during the right season, and for the right type of lifestyle. Instead of alternatively walking far distances on foot or riding public buses or trains, e-bike owners have accessible means of personal, efficient transport at the ready.
The E-Bike Scene: Innovations and Developments
Recognizing why there is an ever-pressing present demand for e-bikes is key to understanding their incentive for present-day consumers. In many urban spaces today, the presence of e-bikes has become increasingly commonplace. Cities employ a variety of e-mobility bike-share fleets—and continue to build and add bike lanes for contemporary commuters. Riders can bike extra miles to work or the store without the concern of time, effort, or breaking out into a heavy sweat.
The Latest Types and Models
Modern electric bike models offer greater investment opportunities than those of the past once did. Earlier-built generations did not provide the same comfort levels, ease of use, and riding experience. Modern versions have successfully addressed and remedied these issues, offering viable design options for a diverse range of cyclists.
You can choose from mountain bikes, off-road bikes, commuter bikes, trikes, and more with powerful batteries that provide a longer charge. Many best-selling models are lightweight, attractive, and boosted with capability.
An E-Bike Tax Break: Qualifications and Deductions
Next up in this guide to understanding electric bike tax credits, let’s consider how the government approaches them. Now that you know more about the power and potential of the electric bike industry in society, you can see why the latest e-bikes may incentivize an assortment of people around the nation. Cycling infrastructure is important not only to cities but also in small towns and suburban neighborhoods.
The federal government recognizes that steering away from automotive-only transportation is a key sustainability effort. E-bike riding is a contributing component to come to terms with the widespread climate crisis. Ergo, a recent bill of legislation recommends e-bikes for tax breaks because they are an affordable and accessible form of sustainable transportation. The ultimate goal of this proposal is to get more people on electric bikes—for everyone’s benefit.
The Internal Revenue Code of 1986
Federal tax law starts with the primary source of the Internal Revenue Code enacted by Congress. This code imposes certain income, employment, estate, and duty taxes on supplies and goods purchased in the United States, controlling the administration of taxation by the government.
The US has amended this code to subsidize the purchase of an electric vehicle through tax credits but has not yet done so for the ultra-power and dynamic electric bicycle. Under an upcoming spending bill, that may all change for the better for all Americans.
The Build Back Better Act
Other standalone legislation has been previously proposed on the subject of e-bike tax credits, such as the E-Bike Act in the Senate. However, if passed in both the House and Senate, the Build Back Better Act would make certain small electrically-motored bikes accessible to more people, with a tax rebate of up to thirty percent. This legislation seeks out a way to bring in those who may have missed out on green incentives before as the government focuses on climate and infrastructure improvements.
Keep in mind that specific eligibility restrictions are set to apply. The proposed legislation offers a $900 maximum tax credit value for the purchase of new electric bikes, with a maximum purchase price of $4,000. If fully approved, taxpayers could claim this credit for one bike per tax year starting this year. Time will only tell if this opportunity will come to fruition or change in the not too distant future. Either way, electric bicycles are an enjoyable and endurable mainstay for years to come.
Purchase a Personal E-Bike at Voltaire
Voltaire Cycles is a specialty electric bike shop in Bend, Oregon. We believe in the power and potential of this sustainable method of transportation and offer a wide array of electric transit solutions for our customers, especially in the high-powered or custom-built e-mobility market.
Our company carries a selection of e-bikes from top brand manufacturers, including Cannondale, Yamaha, Magnum, and many more. Shop online or at our storefront if local—and feel free to reach out with any questions. Alterative eco-friendly solutions and green living experiences can be yours today.
