The Newest 2023 E-Bike Act in the US: Everything you need to know
by tingze cai on Mar 31, 2023
E-Bikes have become increasingly popular in recent years. With the new 2023 e-bike Act in the US, e-bikes have become even more appealing. The e-bike Act is a federal program that provides tax credits to individuals who purchase an electric bicycle. The goal of the program is to promote the use of e-bike as a clean and efficient mode of transportation.
In this blog post, we will go over everything you need to know about the newest 2023 e-bike act in the US.
What kinds of e-bike are qualified for Tax Credits?
The 2023 e-bike act in the US provides tax credits for the purchase of e-bikes that meet the certain requirements. To qualify for the tax credit, an e-bike must meet the following criteria:
- Must be powered by a motor that is at 750 watts or less.
- Must be equipped with pedals that allow the rider to propel the bike without the motor
- Must be new and purchased after December 31,2022.
- Must be equipped with a pedals systems that requires pedaling to activate the motor.
Again, it is important to check with your local tax authority or consult with a tax professional to determine the exact requirements for e-bike tax credits in your areas.
Who is qualified for the e-bike tax credit program?
The price of the purchased electric e-bike must be under $8000, which is twice the amount originally proposed in President Joe Biden’s Build Back Better plan. This increase in price allows for a wider range of high-quality electric bikes to qualify for the credit.
Additionally, the income of the purchaser is taken into consideration to ensure that those who need financial assistance the most can receive it. The income limits for individuals, heads of households, and joint filers are $150,000, $225,000, and $300,000 respectively. This means that those with higher incomes will not be able to take advantage of the credit.
Furthermore,for couples who purchase two electric bikes together,each person can receive one to two credits every three years. This ensures that families are not excluded from the benefits of the credit and allows for more people to be able to afford electric bikes.
How much tax credit would I get from the e-bike tax credit?
Typically,you will get credits of $1500 or 30% of your bike's cost if the said bike is within or under $4000. You will also qualify for additional benefits ranging up to $900 for every individual with an e-bike if your annual salary is 75,000 or less. The best part: the new e-bike tax credit also opens up some pre-tax credits of up to $81 for every e-bike. You will also qualify for a joint rebate if your annual income with the joint filer is $150000 or less.
However, the credits in sates are different. Learn about my state’s policy.
Now that you know who qualifies for the new e-bike tax credit, fret no further and get your new bike right away. All you need to do is ensure that your bike meets the mentioned criterion, so you qualify for the credit. Right now, you will find multiple e-bikes fitting into the category, so your options are practically unlimited. Just explore e-bikes under $4000 with a capacity of fewer than 750 watts and you are good to go.
With the right e-bike, you are open to multiple possibilities. You can explore back-country trails and all of those hunting areas that aren't the most convenient to reach. You will barely find a type of terrain that your e-bike wouldn't manage to support. Thanks to e-bikes you can do just as much and explore as a conventional bike. The best part: you get a tax credit and also pave the way for sustainable living.