Schatz Introduces New Bill To Make Electric Bikes More Affordable, Help Cut Carbon Pollution, Traffic Congestion

Press Release

WASHINGTON -- U.S. Senator Brian Schatz (D-Hawai"i) today introduced the Electric Bicycle Incentive Kickstart for the Environment (E-BIKE) Act, new legislation to promote the use of electric bicycles, or e-bikes, through a refundable consumer tax credit. E-Bikes are increasingly being used as a cheaper, more environmentally-friendly transportation option for short trips and daily commutes that can help break the cycle of fossil fuel use.

"We need to do everything we can to transition to a clean energy economy and that includes changing the way we get around. E-Bikes have the potential to help us get there -- we just need to make it easier for people get on board," said Senator Schatz.

A recent study by researchers at Portland State University found that if 15 percent of car trips were made by e-bike, carbon emissions would drop by 12 percent. Another survey also found that 46 percent of e-bike trips replaced car trips, making e-bikes an effective tool to achieve the tandem goals of reducing traffic congestion and carbon emissions. However, the cost of e-bikes remains a barrier to adoption for many--prices range from $800 to $8,000 depending on battery quality and size. While the U.S. has a current federal tax-credit for consumers who purchase an electric car, there is no current federal credit for e-bikes.

The E-BIKE Act creates a consumer tax credit that:

Covers 30 percent of the cost of a class 1, 2, or 3 e-bike, up to a $1,500 credit;
Applies to new electric bicycles that cost less than $8,000, to include cargo e-bikes;
Permits the purchase of one e-bike for single filers, or two for joint filers;
Is fully refundable, allowing lower-income riders to claim the credit; and
Includes electric tricycles or "e-trike" which can be beneficial for people with disabilities.
The E-BIKE Act is cosponsored by U.S. Senator Ed Markey. Companion legislation has been introduced in the House of Representatives by U.S. Representatives Jimmy Panetta (D-Calif.) and Earl Blumenauer (D-Ore.).

The Schatz legislation is supported by PeopleForBikes, League of American Bicyclists, Hawai"i Bike League, California Bicycle Coalition, Ecology Action, CALSTART, U.S. PIRG, The National Resources Defense Council (NRDC), Gazelle Bikes.

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