The House version of President Joe Biden’s Build Back Better bill offers a new tax credit of up to $1,500 for the purchase of an electric bicycle.
The electric bicycle can not cost more than $5,000 dollars to get the tax credit, but taxpayers will front up to 30 percent of the cost to the purchaser.
From the text of the bill:
The electric bicycle has to have fully operable pedals, a seat for the rider, an electric motor of less than 750 watts, and can only power the rider to travel under 28 miles per hour to qualify for the tax credit.
Electric bicycles have become widely popular in urban communities and even among off-road cyclists. Electric bike sales grew 145 percent from 2019 to 2020.
Couples making more than $150,000 will still get a tax credit for their electric bicycles, but the credit will phase out dependent on their gross income.
The bill also offers businesses commuting benefits for the use of bicycles and electric scooters traveling under 20 miles per hour and bikeshare services.