Electric bicycles have soared in popularity in recent years, and a tax credit in Democrats’ $1.75 trillion Build Back Better bill may fuel their rise even further.

The version of the social safety net and climate bill that was passed by the House of Representatives offers some Americans a fully refundable, 30% tax credit on purchases of certain e-bikes.

Individuals who make $75,000 or less qualify for the maximum credit of up to $900. Joint filers who make up to $150,000 can qualify for two bikes and up to a $900 tax credit on each. It phases out for taxpayers above those income levels. E-bikes with a sticker price of more than $4,000 don’t qualify for the credit.

The e-bike credit has multiple champions in Congress, including Rep. Jimmy Panetta, D-Calif., who earlier in the year introduced similar, standalone legislation to incentivize e-bike purchases. Because e-bikes are a low-carbon transportation option that can replace some car trips, particularly short-mileage ones, Panetta and other advocates say they are crucial to U.S. efforts to fight climate change.

Transportation accounted for 29% of U.S. greenhouse emissions in 2019, according to the Environmental Protection Agency. That’s the largest of any sector, with electricity production and industrial activity checking in second and third at 25% and 23%, respectively.

Panetta said Democrats want the Infrastructure Investment and Jobs Act, which is already law, and the Build Back Better Act, which would fund Democrats’ social and spending priorities, to help accelerate a transition to more sustainable transportation modes. He said the e-bike tax credit “is an important link in that chain of those efforts to do that.”

Therefore the electric bikes will face a better and more exciting future in 2022 and hope the retailers over the world seek out to our factory for starting their successful e-bike business!