A bill introduced Tuesday in the U.S. House of Representatives would give a refundable tax credit of up to $1,500 on the purchase of a new e-bike.

Authored by Congressmen Jimmy Panetta (D-Calif.) and Earl Blumenauer (D-Ore.), the Electric Bicycle Incentive Kickstart for the Environment (E-BIKE) Act supports the use of e-bikes as a zero-carbon transportation mode. Compared to other transportation modes, the bill recommends e-bikes because they are more affordable and accessible.

“E-bikes are not just a fad for a select few; they are a legitimate and practical form of transportation that can help reduce our carbon emissions,” Panetta said. “My legislation will make it easier for more people from all socio-economic levels to own e-bikes and contribute to cutting our carbon output. By incentivizing the use of electric bicycles to replace car trips through a consumer tax credit, we cannot only encourage more Americans to transition to greener modes of transportation, but also help fight the climate crisis.”

If signed into law, the bill would offer individual consumers a refundable 30% tax credit — up to $1,500. The credit is only applicable on purchases of a new e-bike that costs less than $8,000. The credit would be allowed once per individual every three years, or twice for a joint-return couple buying two. The bill also mandates a report from the IRS after two years to understand the distribution of the credit by income tax bracket and adjust for equity in the future. The credit is fully refundable, allowing lower-income workers to claim the credit.

PeopleForBikes, which supports this bill, urged bicycle advocates to send a short letter to their representative, encouraging their support. PFB said studies show that across the U.S. there would be an 11% decrease in carbon emissions with a 15% increase in e-bike mode share. 

“Incentivizing electric bicycles makes them a competitive transportation option for more Americans and supports a national effort to lower carbon emissions,” said PFB’s CEO, Jenn Dice. “The E-BIKE Act rightfully positions electric bicycles as a critical part of a larger solution to climate change and equitable mobility. We’re grateful to Congressman Panetta for leading the charge in Congress.”

For more information, contact PeopleForBikes’ federal affairs manager, Noa Banayan.