I 

118TH CONGRESS 

2D SESSION H. R. 8625 

To amend the Harmonized Tariff Schedule of the United States to modify 

temporarily certain rates of duty for bicycle manufacturing components, 

to establish an electric bicycle production tax credit, to direct the Secretary of Transportation to establish the U.S. Bicycle and E-Bicycle 

Manufacturing Initiative to make loans to support domestic investment 

in the manufacturing of bicycles and electric bicycles, and for other 

purposes. 

IN THE HOUSE OF REPRESENTATIVES 

JUNE 5, 2024 

Mr. BLUMENAUER introduced the following bill; which was referred to the 

Committee on Ways and Means, and in addition to the Committee on Energy and Commerce, for a period to be subsequently determined by the 

Speaker, in each case for consideration of such provisions as fall within 

the jurisdiction of the committee concerned 

A BILL 

To amend the Harmonized Tariff Schedule of the United 

States to modify temporarily certain rates of duty for 

bicycle manufacturing components, to establish an electric bicycle production tax credit, to direct the Secretary 

of Transportation to establish the U.S. Bicycle and EBicycle Manufacturing Initiative to make loans to support domestic investment in the manufacturing of bicycles and electric bicycles, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 


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1 SECTION 1. SHORT TITLE. 

2 This Act may be cited as the ‘‘Domestic Bicycle Pro3 duction Act’’. 

4 SEC. 2. TEMPORARY DUTY SUSPENSION FOR BICYCLE MAN5 UFACTURING COMPONENTS. 

6 (a) IN GENERAL.—Subchapter III of chapter 99 of 

7 the Harmonized Tariff Schedule of the United States (in 

8 the section referred to as the ‘‘HTS’’) is amended by in9 serting the following new heading in numerical sequence: 

‘‘ 9903.87.11 Parts of bicycles imported for use in the assembly of complete bicycles, under the terms 

of U.S. Note 31 to this subchapter ................ Free No change No change ’’. 

10 (b) DEFINITION AND APPLICABILITY.—The U.S. 

11 Notes to subchapter III of chapter 99 of the HTS are 

12 amended by adding at the end following: 

13 ‘‘31.(a) For purposes of heading 9903.87.11, 

14 the term ‘parts of bicycles’ means parts, accessories, 

15 or specific components that are— 

16 ‘‘(i) classified in the tariff provisions de17 scribed in subdivision (f) of this note; and 

18 ‘‘(ii) imported into the customs territory of 

19 the United States for assembly into complete 

20 tricycles or bicycles, including bicycles without a 

21 motor (provided for in heading 8712.00) and 

22 bicycles with an electric motor (provided for in 

23 subheading 8711.60.00). 


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1 ‘‘(b) For purposes of heading 9903.87.11, the 

2 term ‘assembly of complete bicycles’ means the fit3 ting or joining together of fabricated components in 

4 such a way that amounts to the substantial trans5 formation of components classifiable as parts of bi6 cycles under subdivision (a) of this note. 

7 ‘‘(c) Any importer claiming entry of parts of bi8 cycles under heading 9903.87.11 must— 

9 ‘‘(i) certify at the time of entry to the sat10 isfaction of U.S. Customs and Border Protec11 tion (‘CBP’) that such parts will be used in the 

12 assembly of complete bicycles under subdivision 

13 (b) of this note; and 

14 ‘‘(ii) provide appropriate documentation to 

15 CBP upon the completion of final assembly of 

16 such bicycles or at such time as CBP may oth17 erwise establish. 

18 ‘‘(d) Parts of bicycles for which entry is claimed 

19 under heading 9903.87.11 shall be excluded from 

20 any additional duties under section 301 of the Trade 

21 Act of 1974 (19 U.S.C. 2411) or any other provision 

22 of law based on the classification of such parts 

23 under any of chapters 1 through 97. 

24 ‘‘(e) Notwithstanding subdivision (d) of this 

25 note, parts of bicycles may be included in a claim for 


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1 duty-free entry under heading 9903.87.11 if such 

2 parts are properly classified in an 8-digit tariff head3 ing or subheading described in subdivision (f) when 

4 such parts are entered on or after the date on which 

5 an additional duty under section 301 of the Trade 

6 Act of 1974 or any other provision of law is no 

7 longer effective. 

8 ‘‘(f) The 8-digit tariff headings and sub9 headings described in this subdivision are the fol10 lowing: 

11 ‘‘3923.50.00 

12 ‘‘3926.90.96 

13 ‘‘4011.50.00 

14 ‘‘4013.20.00 

15 ‘‘4908.10.00 

16 ‘‘7315.11.00 

17 ‘‘7326.90.25 

18 ‘‘8501.31.40 

19 ‘‘8501.31.50 

20 ‘‘8501.31.60 

21 ‘‘8507.20.80 

22 ‘‘8507.30.80 

23 ‘‘8507.50.00 

24 ‘‘8507.60.00 

25 ‘‘8512.90.40 


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1 ‘‘8543.70.45 

2 ‘‘8714.91.20 

3 ‘‘8714.91.30 

4 ‘‘8714.91.50 

5 ‘‘8714.91.90 

6 ‘‘8714.92.10 

7 ‘‘8714.92.50 

8 ‘‘8714.93.28 

9 ‘‘8714.93.35 

10 ‘‘8714.93.70 

11 ‘‘8714.94.30 

12 ‘‘8714.94.90 

13 ‘‘8714.95.00 

14 ‘‘8714.96.10 

15 ‘‘8714.96.50 

16 ‘‘8714.96.90 

17 ‘‘8714.99.10 

18 ‘‘8714.99.50 

19 ‘‘8714.99.60 

20 ‘‘8714.99.80’’. 

21 (c) PROCEDURES.—The Commissioner of U.S. Cus22 toms and Border Protection (herein referred to as the 

23 ‘‘Commissioner’’) is authorized to establish appropriate 

24 procedures for the administration of this section and the 

25 amendments in subsections (a) and (b) and may require 


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1 such information as the Commissioner considers appro2 priate from any claimant for duty-free entry under head3 ing 9903.87.11 of the HTS, as added by subsection (a). 

4 (d) REPORT.—Not later than five years after the date 

5 of the enactment of this Act, the United States Inter6 national Trade Commission shall submit to the Committee 

7 on Ways and Means of the House of Representatives and 

8 the Committee on Finance of the Senate a report describ9 ing the effects of heading 9903.87.11 of the HTS, as 

10 added by subsection (a), and evaluating the contribution 

11 and effectiveness of such heading to the goal of assembling 

12 2,000,000 bicycles annually in the United States within 

13 5 years after such date of enactment and the potential 

14 of the domestic market to assemble 5,000,000 bicycles an15 nually in the United States within 10 years after such date 

16 of enactment. 

17 (e) EFFECTIVE DATE.—The amendments made by 

18 subsections (a) and (b) shall apply with respect to goods 

19 entered, or withdrawn from warehouse for consumption, 

20 during the period beginning on the date of the enactment 

21 of this Act and ending 10 years after such date of enact22 ment. 

23 SEC. 3. ELECTRIC BICYCLE PRODUCTION CREDIT. 

24 (a) ELECTRIC BICYCLE PRODUCTION CREDIT.—Sub25 part D of part IV of subchapter A of chapter 1 of the 


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1 Internal Revenue Code of 1986 is amended by adding at 

2 the end the following: 

3 ‘‘SEC. 45BB. ELECTRIC BICYCLE PRODUCTION CREDIT. 

4 ‘‘(a) IN GENERAL.—For purposes of section 38, in 

5 the case of a manufacturer of covered electric bicycles, the 

6 electric bicycle production credit for the taxable year is 

7 an amount equal to the applicable percentage of the price 

8 for which the manufacturer sells each covered electric bi9 cycle during such taxable year. 

10 ‘‘(b) APPLICABLE PERCENTAGE.—For purposes of 

11 subsection (a), the applicable percentage shall be— 

12 ‘‘(1) in the case of covered electric bicycles sold 

13 in taxable years beginning after December 31, 2024, 

14 and before January 1, 2032, 20 percent, 

15 ‘‘(2) in the case of covered electric bicycles sold 

16 in taxable years beginning after December 31, 2031, 

17 and before January 1, 2033, 15 percent, 

18 ‘‘(3) in the case of covered electric bicycles sold 

19 in taxable years beginning after December 31, 2032, 

20 and before January 1, 2034, 10 percent, and 

21 ‘‘(4) in the case of covered electric bicycles sold 

22 in taxable years beginning after December 31, 2033, 

23 and before January 1, 2035, 5 percent. 

24 ‘‘(c) DEFINITIONS.—For purposes of this section— 


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1 ‘‘(1) COVERED ELECTRIC BICYCLE.—The term 

2 ‘covered electric bicycle’ means an electric bicycle 

3 that is produced domestically or assembled domesti4 cally. 

5 ‘‘(2) ELECTRIC BICYCLE DEFINED.—The term 

6 ‘electric bicycle’ has the meaning given such term in 

7 section 217(j) of title 23, United States Code. 

8 ‘‘(d) REGULATIONS.—The Secretary shall prescribe 

9 such regulations as may be necessary to carry out this 

10 section, including regulations which establish require11 ments regarding what constitutes domestic production and 

12 domestic assembly for purposes of the definition in sub13 section (c)(1). 

14 ‘‘(e) TERMINATION.—This section shall not apply to 

15 any taxable year beginning after December 31, 2034.’’. 

16 (b) ELECTRIC BICYCLE PRODUCTION CREDIT

17 TRANSFERABILITY.—Section 6418(f)(1)(A) of the Inter18 nal Revenue Code of 1986 is amended by adding at the 

19 end the following: 

20 ‘‘(xii) The electric bicycle production 

21 credit determined under section 45BB.’’. 

22 (c) CONSISTENCY WITH INTERNATIONAL AGREE23 MENTS.—The Secretary of the Treasury shall apply sec24 tion 45BB of the Internal Revenue Code of 1986, as 


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1 added by this Act, in a manner consistent with the obliga2 tions of the United States under international agreements. 

3 (d) CONFORMING AMENDMENTS.—Section 38(b) of 

4 the Internal Revenue Code of 1986 is amended— 

5 (1) in paragraph (40), by striking ‘‘plus’’; 

6 (2) in paragraph (41), by striking the period 

7 and inserting ‘‘, plus’’; and 

8 (3) by adding at the end the following: 

9 ‘‘(42) the electric bicycle production credit de10 termined under section 45BB.’’. 

11 (e) CLERICAL AMENDMENT.—The table of sections 

12 for part IV of subchapter A of chapter 1 of such Code 

13 is amended by inserting after the item relating to section 

14 45AA the following new item: 

‘‘45BB. Electric bicycle production credit.’’. 

15 (f) EFFECTIVE DATE.—The amendments made by 

16 this section shall apply to taxable years beginning after 

17 the date of the enactment of this Act. 

18 SEC. 4. U.S. BICYCLE AND E-BICYCLE MANUFACTURING INI19 TIATIVE. 

20 (a) IN GENERAL.—Not later than 180 days after the 

21 date of the enactment of this Act, the Secretary of Trans22 portation shall establish a program to be known as the 

23 ‘‘U.S. Bicycle and E-Bicycle Manufacturing Initiative’’ 

24 (hereinafter referred to as the ‘‘Initiative’’) to make loans 


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1 to businesses (other than non-profit businesses) to support 

2 domestic investment in the manufacturing of bicycles. 

3 (b) LOAN PROGRAM.— 

4 (1) INTEREST RATE LIMIT.—The interest rate 

5 for a loan under the Initiative may not exceed 1 per6 cent. 

7 (2) DISTRIBUTION LIMIT.—A business (includ8 ing businesses that are subsidiaries of the same par9 ent company) may not receive more than 

10 $50,000,000 in loans under the Initiative. 

11 (c) LOAN APPLICATION.— 

12 (1) IN GENERAL.—The Secretary shall make 

13 the application for a loan under the Initiative avail14 able not less than annually, at a time and in such 

15 form and manner as the Secretary considers appro16 priate. 

17 (2) EXPECTED PRODUCTION TARGET SUBMIS18 SION.—To be eligible for a loan under the Initiative, 

19 an applicant shall submit current and 5-year ex20 pected production targets with the application. 

21 (3) DISCLOSURE TO THE PUBLIC.—The Sec22 retary shall make public the name of each applicant 

23 and the production targets submitted pursuant to 

24 paragraph (2). 


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1 (d) ELIGIBLE USES.—A recipient of a loan under the 

2 Initiative may use loan funds to purchase capital equip3 ment, including— 

4 (1) material handling equipment, including 

5 forklifts and cranes; 

6 (2) air compressors and chillers; 

7 (3) waste (including wastewater) handling 

8 equipment; 

9 (4) testing equipment to test for quality stand10 ards; 

11 (5) equipment used for recycling; 

12 (6) heat treatment and burn off ovens; 

13 (7) assembly and conveyor lines and related 

14 equipment; 

15 (8) equipment used to fabricate bicycles or bicy16 cle parts, including steel, titanium, magnesium, alu17 minum, plastic, and carbon fiber; 

18 (9) machines used to align bicycle frames or bi19 cycle parts; 

20 (10) machines used to prepare bicycle frames, 

21 parts, or materials, for coating; 

22 (11) machines used to paint or powder coat; 

23 and 


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1 (12) any other capital equipment the Secretary 

2 considers necessary for the domestic manufacturing 

3 of bicycles. 

4 (e) CONDITIONS OF THE LOAN.— 

5 (1) PREVAILING WAGE.—A recipient of a loan 

6 under the Initiative shall pay an employee who en7 gages in activities funded by loan funds at least the 

8 prevailing wage, in the same manner as under sec9 tion 3142(b) of title 40, United States Code, for the 

10 life of the loan. 

11 (2) ASSEMBLY OUTPUT REQUIREMENT.—If, not 

12 later than 3 years after the date on which loan 

13 funds were initially disbursed to a recipient of a loan 

14 under the Initiative, the recipient is unable to dem15 onstrate to the Secretary an average of 20,000 bicy16 cles assembled for each $5,000,000 borrowed, or an 

17 equivalent ratio thereof, the recipient may not re18 ceive any additional loan under the Initiative. 

19 (3) REPAYMENT.—In carrying out the Initia20 tive, the Secretary shall require a recipient of a loan 

21 under the Initiative to— 

22 (A) make monthly repayments for the loan 

23 in equal amounts beginning not later than 1 

24 year after the date on which loan funds were 

25 initially disbursed to the recipient; and 


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1 (B) repay such loan in full not later than 

2 12 years after the date on which loan funds 

3 were initially disbursed to the recipient. 

4 (f) COLLATERAL.— 

5 (1) IN GENERAL.—In carrying out the Initia6 tive, the Secretary shall obtain and maintain a secu7 rity interest, in an amount sufficient to cover 100 

8 percent of the amount of the loan under the Initia9 tive, in the equipment purchased by the recipient 

10 using loan funds disbursed to the recipient. 

11 (2) PRIORITY.—Any security interest obtained 

12 and maintained by the Secretary pursuant to this 

13 subsection shall be entitled to priority over the 

14 claims and rights of any party (including any re15 ceiver, conservator, trustee, or similar party having 

16 rights of a lien creditor) other than claims and 

17 rights that— 

18 (A) would be entitled to priority under oth19 erwise applicable law; and 

20 (B) are held by bona fide purchasers for 

21 value or by secured parties that are secured by 

22 perfected security interests. 

23 (g) REPORTING REQUIREMENT.—The Secretary shall 

24 submit to Congress an annual report detailing current and 

25 expected future domestic bicycle production rates and the 


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1 share of the global bicycle production market for which 

2 domestic bicycle producers are responsible. 

3 (h) AUTHORIZATION OF APPROPRIATIONS.—There is 

4 authorized to be appropriated for the purpose of carrying 

5 out the Initiative the following: 

6 (1) $80,000,000 per year for the first 3 full fis7 cal years following the date of the enactment of this 

8 Act. 

9 (2) $100,000,000 per year in full fiscal years 4 

10 through 7 following the date of the enactment of 

11 this Act. 

12 (3) $120,000,000 per year in full fiscal years 8 

13 through 10 following the date of the enactment of 

14 this Act. 

15 (i) BICYCLE DEFINED.—In this section, the term 

16 ‘‘bicycle’’ includes an electric bicycle (as defined in section 

17 217(j) of title 23, United States Code). 

Æ 


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