Lawmakers in the U.S. have taken interest in e-bike subsidization. With the world marching on towards cleaner energy and ditching fossil fuels, electric bicycles are a great alternative to traditional transportation. With the benefits they can bring in fighting climate change and moving towards sustainability, governments around the US are starting to realize the benefits they bring.
They’re much cheaper than electric cars, and they’re a great way to get some exercise. But while they are cheaper than electric vehicles, they’re still cost-prohibitive for many people. That’s why in this article, we’ll focus on recent state and federal legislation around the United States seeking to help offset the cost of an e-bike for consumers.
Related on Insider: Ultimate E-Bike Buying Guide | 10 Great Places for E-Bikes
Shop: E-Bikes on Newegg
United States Legislation
First, we’ll go over federal legislation that would subsidize the costs of e-bikes for everyone in the US. So far, there are three major bills in place that could help make e-bikes more cost-effective and affordable.
Bicycle Commuter Act (H.R.384 / S.1892)
Back in 2017, Congress passed the largest tax reform bill the US has seen in 30 years. As part of that reform, the Qualified Bicycle Commuting Reimbursement – a tax credit for bicycle commuters – was suspended from 2018 through 2025.
The Bicycle Commuter Act – introduced on January 21, 2021 – is a bill that seeks to repeal those changes. It would require employers to offer the tax credit for employees who regularly bike to work, to help pay for the cost of repairs and storage of those bikes. The bill also includes bike share and e-bikes.
Electric Bicycle Incentive Kickstart for the Environment (E-BIKE) Act (H.R.1019 / S.2420)
These bills were introduced into the US House of Representatives and Senate in 2021 (February 11, 2021, and July 21, 2011, respectively). These are companion bills that, starting in 2022, would allow taxpayers to claim a tax credit on the purchase of an e-bike under 750 watts.
Originally, the bills would allow for a 30% deduction on the purchase price of an e-bike costing up to $8000. However, after being sent to the House Ways and Means Committee, the deduction was reduced to 15%, for a credit totaling up to $1500 per taxpayer. The change also proposed phasing out the subsidy credit at $75,000 per year ($112,500 for heads of household and $150,000 for married joint filers).
Since being referred to the House Ways and Means Committee, the bills appear to have been incorporated into the Build Back Better Act.
Build Back Better Act (H.R.5376)
The Build Back Better Act – introduced on September 27, 2021 – is a massive $1.75 trillion bill that includes a tax credit for e-bikes. It adopted the framework of the E-BIKE Act, though lawmakers did make some changes. Namely, the $1500 maximum from the E-BIKE Act was reduced to $900, and only bikes with an MSRP of $4000 would qualify for the credit.
Despite president Joe Biden trying to resurrect the bill in February 2022, the bill seems to have been laid on the table.
California Legislation
California has a reputation for progressive politics. So it’s no surprise that it’s the state leading the charge with the most e-bike related legislation in the country. With multiple city and company-funded initiatives in place for subsidizing costs for e-bike consumers, it’s certainly among the most e-bike-friendly states in the US, too.
There are also a couple different bills in the works on the state level that could help consumers afford an e-bike more easily.
Reduction of Greenhouse Gases Emissions: Mobility Options (SB-400)
In 2017, California established the Clean Cars 4 All Program. This program seeks to reduce emissions and improve air quality by providing incentives for lower-income residents to replace high-polluting vehicles with low or zero-emission vehicles, or other “mobility options” (such as public transit and ride-sharing).
This bill – introduced on February 20, 2019 – sought to amend the program to include bike sharing and e-bikes as part of the mobility options. It was passed on August 8, 2019.
Air Quality Improvement Program: Electric Bicycles (AB 117)
Another California program aiming to reduce air pollution and lower emissions is the Air Quality Improvement Program.
This bill – introduced on December 18, 2020 – would provide $10 million in funding for rebates on e-bikes for California residents. As of August 26, 2021, the bill is in committee: held under submission, essentially meaning that it’s stalled and potentially open to further negotiation.
Connecticut Legislation
Known as the Constitution State, Connecticut is another of the few states leading the charge on e-bike subsidization. It has but one bill advocating for a tax credit for purchasing an e-bike, and it’s quite a mouthful.
An Act Establishing a Credit Against the Personal Income Tax for Certain Taxpayers for the Purchase of an Electric Bike (H.B. 5088)
This long-titled bill – as the title implies – attempts to establish a tax credit for e-bike purchases for some taxpayers. So far, it doesn’t seem to establish who exactly counts as “certain taxpayers”, but it does seem to have wide support, with 17 legislators sponsoring the bill.
It was introduced into the Connecticut General Assembly on February 15, 2022, and since then, it’s been referred to the Joint Committee on Finance, Revenue and Bonding.
Massachusetts Legislation
Massachusetts is known for its rich history, culture, and food. Adding to it, it’s among the pioneering states pushing for e-bike subsidy legislation. With a couple of bills in the works, residents and taxpayers in Massachusetts could see financial kickbacks for e-bike expenses.
An Act Relative to Commuter Transit Benefits (H.3088 / S.1890)
Just two of a set of related bills circulating through the Massachusetts legislature, these bills seek to amend the law to include bike share and e-bikes in the commuter benefits for transit. If passed, it would require companies with more than 20 employees to offer pre-tax benefits for those using e-bikes and bike shares (among other defined means of transit) to commute to work.
Both the house and senate referred their respective bills to the Joint Committee on Revenue on March 29, 2021. As of April 4, 2022, both bills have accompanied a new draft, Bill H.4562, which is still pending a final decision.
An Act Relative to Electric Bicycle Rebates (H.3262)
Another bill seeking to subsidize the cost of e-bikes for consumers, this bill would establish rebates through the Department of Energy Resources, to the tune of $500 for general consumers, and $750 for low and moderate-income consumers. The bill also establishes that the rebates cannot exceed 40% of the retail price for the bikes, but can also be used on both new and used e-bikes.
The bill was referred to the committee on Telecommunications, Utilities and Energy on March 29, 2021, and is pending reporting in May 2022.
New York Legislation
Another one of the most progressive states in the US, New York is another e-bike-friendly state. With e-bikes being common in places like New York City, it isn’t too surprising that there’s an e-bike subsidy bill circulating in the state legislature.
Ride Clean Rebate Program for Electric Assist Bicycles and Electric Scooters (A.B. A516A / S.B. S3080A)
These bills attempt to establish a parallel program to the Drive Clean Rebate Program, a program that offers rebates for electric cars. Under the bills, consumers would receive a 50% rebate on electric scooters and bikes, up to a rebate amount of $1100.
The bill was introduced on January 27, 2021, where it was referred to the Energy and Telecommunications Committee. It died in the assembly on January 5, 2022, going back to the senate and being subsequently re-referred to the Energy and Telecommunications Committee.
Oklahoma Legislation
Oklahoma is a major oil and natural gas producer, but that doesn’t stop lawmakers from introducing tax subsidy legislation for e-bikes. So far, Oklahoma has one bill advocating for e-bike subsidization for taxpayers.
