How can Congress make electric bikes more affordable?

E-bikes are a great solution for replacing car trips — they’re much better for the environment, the fuel is way cheaper, and they’re a good source of exercise, though you don’t have to work too hard if you don’t want to. Unfortunately, they’re also prohibitively expensive, costing thousands of dollars apiece.  

That’s why Rep. Earl Blumenauer, D-Ore., has introduced the Electric Bicycle Incentive Kickstart for the Environment (E-BIKE) Act in Congress. Authored with Rep. Jimmy Panetta, D-Calif., the E-BIKE Act, if passed, will provide a refundable tax credit of up to 30 percent on the purchase of a new electric bicycle. 

“The bottom line here is to fully capitalize on the power of bicycles to really transform the mobility landscape for metropolitan areas,” Blumenauer said. The credit would only apply to purchases of $8,000 or less, and would have a maximum of $1,500. Additionally, a bike with a motor more powerful than 750W would not qualify. One person would only be able to claim the credit once every three years, although a joint-return couple buying two bikes would get it twice. Blumenauer is optimistic that with Democratic control of both the Senate and the House, as well as the White House, the bill has a good chance of being enacted.