Federal tax credits for electric cars are nothing new, but the Senate Finance Committee recently approved a10 percent tax credit, worth up to $2,500, for e-bike and e-motorcycle purchases.
Senator Ron Wyden proposed the amendment to reinstate a previous tax break from 2009 that was part of the $800 billion stimulus package, which expired at the beginning of 2012. Wyden’s hope is that the proposed measure will help create jobs in the U.S. and encourage the electric bicycle industry to grow. Currently, that market is biggest overseas; approximately 25 million e-bikes were sold in China last year (compared to fewer than 100,000 in the States). In addition to its economic-boosting intent, we like this tax credit if it entices Americans to drive conventional vehicles less.
As with any bill, this one has still got to make it through the Senate, the House and meet the president’s approval. But if you’re feeling optimistic, you could get cracking on your shopping research for an e-bike or e-motorcycle now. Don’t look into getting an electric golf cart, though, tax credits for those will end if this bill passes.