Skip to main content

New 30% tax credit for electric bicycles makes progress in US Senate

Remember that proposed 30% tax credit for electric bicycles in the US? It’s now one step closer to becoming law, thanks to recent progress in the US Senate.

Late last week, a new bill was introduced to the Senate known as the Electric Bicycle Incentive Kickstart for the Environment (E-BIKE) Act.

The bill, S.2420, is a companion bill to H.R.1019 that was introduced into the House of Representatives earlier this year.

The Senate bill was introduced by senators Ed Markey (D-MA) and Brian Schatz (D-HI).

It proposes a 30% tax credit for new electric bicycle purchases in the US, up to a maximum credit of $1,500.

The goal of the bill is to help promote electric bicycles as an alternative form of transportation to personal cars. Not only would this help reduce harmful emissions, but it would also reduce traffic for everyone in crowded cities.

The bill would make this possible by amending the Internal Revenue Code to create the new tax credit.

To be successful, both the House of Representatives and the Senate must pass their versions of the bill, then any differences between the two must be addressed before heading to President Joe Biden’s desk to be signed into law.

To qualify, electric bicycles would have to be priced under $8,000, which includes the vast majority of e-bikes sold in the US.

Most common electric bicycles used for commuting fall into the $1,000-$3,000 range, while higher end e-bikes from more upscale companies usually cost closer to the $4,000-$6,500 range.

Electric bicycles in Classes 1, 2, and 3 would be eligible, meaning e-bikes up to 28 mph (45 km/h) could qualify. However, e-bikes with motors carrying continuous power ratings of above 750W or that reach speeds higher than 28 mph (45 km/h) under motor power would not qualify.

The tax credit would also be fully refundable, helping lower-income riders take advantage as well.

The Senate bill was introduced late last week and is expected to gain a number of co-sponsors in the coming weeks.

The House of Representatives currently has nearly two dozen co-sponsors, all Democrats. Since its introduction in February, no Republicans have signed on to co-sponsor the legislation.

If you would like to show support for this bill, simply visit the US Congress website here and click “Contact Your Member” to find your Senator’s contact info.

FTC: We use income earning auto affiliate links. More.

Electrek T-Shirt
Stay up to date with the latest content by subscribing to Electrek on Google News. You’re reading Electrek— experts who break news about Tesla, electric vehicles, and green energy, day after day. Be sure to check out our homepage for all the latest news, and follow Electrek on Twitter, Facebook, and LinkedIn to stay in the loop. Don’t know where to start? Check out our YouTube channel for the latest reviews.



Avatar for Micah Toll Micah Toll

Micah Toll is a personal electric vehicle enthusiast, battery nerd, and author of the Amazon #1 bestselling books DIY Lithium Batteries, DIY Solar Power, The Ultimate DIY Ebike Guide and The Electric Bike Manifesto.

The e-bikes that make up Micah’s current daily drivers are the $999 Lectric XP 2.0, the $1,095 Ride1Up Roadster V2, the $1,199 Rad Power Bikes RadMission, and the $3,299 Priority Current. But it’s a pretty evolving list these days.

You can send Micah tips at, or find him on Twitter, Instagram, or TikTok.