The Build Back Better spending bill, which passed the House last month and awaits action in the Senate, e-bikes could, for the first time, get a push from the federal government. Tucked among its more than 2,000 pages is a tax credit of up to $900 for e-bikes.
If the incentive survives intact, e-bike makers, which lobbied for its inclusion, will be taking a (battery-assisted) victory lap. “Tables will have turned if this goes through,” says Mike Radenbaugh, chief executive officer of the startup Rad Power Bikes. “We think that e-bikes should ultimately see a much bigger set of support…but we’re really excited to see us at least heading in the right direction.”
As it stands, the bill provides a credit of 30% for up to $3,000 spent on a new e-bike, excluding bikes that cost more than $4,000. (The credits also phase out according to household income beginning at $75,000 for a single taxpayer.) This is a comedown from the original proposal. In the bill that was introduced to the House, the credit covered 30% of spending up to $5,000 on bikes costing as much as $8,000.