Senate Finance Committee Approves E-Bike Federal Tax Credit of Maximum $2,500 image

Recently the Senate Finance Committee agreed to approve a tax credit of maximum $2,500, which means 10% of the electric bikes and motorcycles’ price.

The amendment was approved after a voice vote on whether e-bikes are worth it. If the bill passes the electric vehicle tax credit for golf carts will reach its end, since they can’t be taken on public highways like electric bikes. It is very likely that the bill will pass since this would mean creating more jobs in the US and not losing them overseas.

In 2011 more than 25 million e-bikes were sold in China, compared to 100,000 in the US. Therefore major car and motorcycle manufacturers are beginning to turn their attention towards the US, where currently only three small companies are selling the product: Brammo, BRD, and Zero Motorcycles.

Analysts believe that federal tax credits will boost sales and increase production, bringing down retail prices long term. Plug-in passenger vehicles also have a tax credit that could reach $7,500, depending on the battery size. For example the Chevy Volt can get a credit worth $7,500, while the Toyota Prius Plug-In can only reach $2,500.