E-BIKE Act to Encourage Use of Electric Bicycles and Reduce Carbon Emissions

Today, Congressman Jimmy Panetta (D-Carmel Valley) and Congressional Bike Caucus Chairman Earl Blumenauer (OR-03) introduced the Electric Bicycle Incentive Kickstart for the Environment (E-BIKE) Act to encourage the use of electric bicycles, or e-bikes, through a consumer tax credit.  Due to the distance, speed, and ease by which they can travel, e-bikes will help replace vehicle trips and commutes and reduce carbon emissions.
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A recent study found that if 15 percent of car trips were made by e-bike, carbon emissions would drop by 12 percent.  46% percent of e-bike commute trips replaced automobile commute trips according to a recent North American survey, and a more thorough review of European studies showed that e-bike trips replaced car trips 47% to 76% of the time.

The E-BIKE Act creates a consumer tax credit that:

• Covers 30% of the cost of the electric bicycle, up to a $1,500 credit
• Applies to new electric bicycles that cost less than $8,000
• Is fully refundable, allowing lower-income workers to claim the credit

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“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,” said Congressman Panetta.  “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 can not only encourage more Americans to transition to greener modes of transportation, but also help fight the climate crisis.”

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