United States president Joe Biden proposed a bill called Build Back Better after winning the presidential election. This bill contained funding of COVID relief, welfare, infrastructure and also funds for helping the fight against climate change. The Build Back Better Act provided funds with billions of dollars for e-bike tax credit.
Why was e-bikes included in the Bill
Build Back Better deals with a lot of issues which also include helping the fight against climate change. The green transportation movement has been around the corner and people have wanted to fight against climate change in the past, but the cost of e-bikes were very high and unaffordable. But when/if this bill is passed, the e-bike industry is going to get huge funds from the federal government that’ll decrease the price of e-bikes and make them affordable for most of the people. Once people can afford their e-bikes and also take the benefits that come with it, the green transportation movement will certainly gain more traction.
What is the benefit behind tax credit for e-bikes?
The reason why Build Back Better Act provides tax benefits for e-bikes is that bicycles are considered to be one of the solution for climate change. They are said to be the necessary tools that will help us fight climate change.
Under Build Back Better spending bill, which is currently in danger of not passing the Senate, for the first time e-bikes are going to get funds from the federal government. If everything goes well and this bill passes, the e-bikes manufacturers and makes will have many benefits.
Although e-bikes have been around for awhile (the first one being invented in 1897), their relevance has gained thanks to climate change. These offer a more affordable solution to eco-friendly transportation than expensive EVs.
Under the Build Back Better Act, 30% tax credit will be given over a period of five years. This basically means that money is given back to people who are using green transportation as a means to travel.
What does the bill proposes
The Build Back Better Act propose the budget of $4.1 billion for tax credit on e-bikes. The tax credit can also be applied to purchase a new e-bike with a benefit value of $900.
Credits are going to be phased starting from $75,000 or less eligible for receiving the credit. Unfortunately, e-bikes worth more than 4 grand will not be eligible for the tax credit.
Because of this act, now the consumer will be able to afford the bike according to the requirements. Before this, the cost of e-bikes were very high and even if someone wanted to go green and help in fight against climate change, they couldn’t. But now because of Build Back Better Act, everyone can afford an e-bike and have green transportation.
This bill has brought a new hope not only to the e-bike industry but also to the problems of climate change, COVID-19 relief, etc. Now, people can gain the benefits of purchasing e-bikes and help in the green transportation movement.
The Build Back Better Act shines a new hope for the country and hopefully we will see the changes in the coming future because of this act.
Featured Image by Markus Spiske on Unsplash