U.S. plans to reduce taxes on electric bikes for $1,500
According to The Verge, there is good news in the latest version of the White House budget agreement: It plans to provide up to $1,500 in tax relief for buyers of new electric bicycles. For a product that is still struggling for mass adoption, this is an extremely important proposal. If the agreement is passed in its current form, electric bicycles will become very cheap for most Americans. In turn, this could mean major changes in the transportation options of millions of people across the United States.
The legislation will provide Americans with a refundable tax credit worth 30% of the purchase price of a new electric bike, capped at $1,500. All three types of electric bicycles are eligible for tax credits, but bicycles with a motor power of more than 750 watts are not eligible. The tax credit can be fully refunded, which will enable low-income earners to apply.
It should be noted that bicycles with a cost of more than US$8,000 will not be eligible. For bicycles with a cost of more than US$5,000, the 30% tax credit will begin to be phased out. The plan also conducts means surveys based on tax status, which means that individuals with an annual income of $75,000, household heads with an annual income of $112,500, and married couples with an annual income of $150,000, will receive a tax credit for every $1,000 spent. Will begin to gradually reduce by 200 dollars.
Electric bicycles are much more expensive than ordinary bicycles and usually sell for between US$1,000 and US$8,000 in the United States. But they may also replace many people's car travel, which may help make real progress in combating climate change. A recent study found that if 15% of car trips use electric bicycles, carbon emissions will be reduced by 12%.
In this huge 1600-page bill, there are other benefits for cyclists. People who ride a bicycle to work or use bicycle sharing will be eligible for pre-tax commuter benefits, similar to those who drive to work or take public transportation to work. According to the proposal, employees will be allowed to receive bicycle benefits of up to 30% of parking benefits, which is currently equivalent to US$81 per month and less than US$1,000 per year for cycling.