E-BIKE Act

The E-BIKE Act (S 881) creates a 30% federal tax credit for individuals who purchase new, qualified electric bicycles, up to $5,000 per bike. It directly affects individual consumers by reducing the cost of qualifying e-bikes, which must meet specific safety and technical standards (e.g., motors under 750 watts, speed limits of 20-28 mph, UL 2849 certification, and unique VIN labeling). The credit phases out for higher earners, with income limits of $150,000 (single), $225,000 (head of household), and $300,000 (joint returns). The bill also includes rules to prevent double benefits and requires retailers to provide clear pricing details if consumers transfer the credit to them at purchase.