II 

117TH CONGRESS 

1ST SESSION S. 2420 

To amend the Internal Revenue Code of 1986 to provide a credit for the 

purchase of certain new electric bicycles. 

IN THE SENATE OF THE UNITED STATES 

JULY 21, 2021 

Mr. SCHATZ (for himself and Mr. MARKEY) introduced the following bill; 

which was read twice and referred to the Committee on Finance 

A BILL 

To amend the Internal Revenue Code of 1986 to provide 

a credit for the purchase of certain new electric bicycles. 

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

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Electric Bicycle Incen5 tive Kickstart for the Environment Act’’ or as the ‘‘E6 BIKE Act’’. 

7 SEC. 2. CREDIT FOR CERTAIN NEW ELECTRIC BICYCLES. 

8 (a) IN GENERAL.—Subpart C of part IV of sub9 chapter A of chapter 1 of the Internal Revenue Code of 


pamtmann on DSKBC07HB2PROD with BILLS
2 

•S 2420 IS

1 1986 is amended by adding at the end the following new 

2 section: 

3 ‘‘SEC. 36C. ELECTRIC BICYCLES. 

4 ‘‘(a) ALLOWANCE OF CREDIT.—In the case of an in5 dividual, there shall be allowed as a credit against the tax 

6 imposed by this subtitle for any taxable year an amount 

7 equal to 30 percent of the cost of any qualified electric 

8 bicycle placed in service by the taxpayer during such tax9 able year. 

10 ‘‘(b) LIMITATION.— 

11 ‘‘(1) DOLLAR LIMITATION.—In the case of any 

12 taxpayer for any taxable year, the credit allowed 

13 under subsection (a) shall not exceed the excess (if 

14 any) of— 

15 ‘‘(A) $1,500 (twice such amount in the 

16 case of a joint return), reduced by 

17 ‘‘(B) the aggregate credits allowed to the 

18 taxpayer under subsection (a) for the 2 pre19 ceding taxable years. 

20 ‘‘(2) NUMBER OF BICYCLES.—In the case of 

21 any taxpayer for any taxable year, the number of bi22 cycles taken into account under subsection (a) shall 

23 not exceed the excess (if any) of— 

24 ‘‘(A) 1 (2 in the case of a joint return), re25 duced by 


pamtmann on DSKBC07HB2PROD with BILLS
3 

•S 2420 IS

1 ‘‘(B) the aggregate number of bicycles 

2 taken into account by the taxpayer under sub3 section (a) for the 2 preceding taxable years. 

4 ‘‘(c) QUALIFIED ELECTRIC BICYCLE.—For purposes 

5 of this section— 

6 ‘‘(1) IN GENERAL.—The term ‘qualified electric 

7 bicycle’ means a two- or three-wheeled vehicle— 

8 ‘‘(A) which is a class 1 electric bicycle, a 

9 class 2 electric bicycle, or a class 3 electric bicy10 cle, 

11 ‘‘(B) which is equipped with— 

12 ‘‘(i) pedals capable of propelling such 

13 vehicle, 

14 ‘‘(ii) a saddle or seat for the rider, 

15 and 

16 ‘‘(iii) an electric motor of less than 

17 750 watts which is capable of propelling 

18 such vehicle, 

19 ‘‘(C) the original use of which commences 

20 with the taxpayer, 

21 ‘‘(D) which is acquired for use by the tax22 payer in the United States and not for lease or 

23 resale, and 


pamtmann on DSKBC07HB2PROD with BILLS
4 

•S 2420 IS

1 ‘‘(E) which is not property of a character 

2 subject to an allowance for depreciation or am3 ortization in the hands of the taxpayer. 

4 ‘‘(2) LIMITATION BASED ON ACQUISITION

5 COST.—The term ‘qualified electric bicycle’ shall not 

6 include any vehicle if the aggregate amount paid for 

7 the acquisition of such vehicle exceeds $8,000. 

8 ‘‘(3) CLASS 1 ELECTRIC BICYCLE.—The term 

9 ‘class 1 electric bicycle’ means a two- or three10 wheeled vehicle equipped with an electric motor that 

11 provides assistance only when the rider is pedaling, 

12 that is not capable of providing assistance when the 

13 speed of the vehicle exceeds 20 miles per hour, and 

14 that is not a class 3 electric bicycle. 

15 ‘‘(4) CLASS 2 ELECTRIC BICYCLE.—The term 

16 ‘class 2 electric bicycle’ means a two- or three17 wheeled vehicle equipped with an electric motor that 

18 may be used to propel the vehicle without the need 

19 of any additional assistance, and that is not capable 

20 of providing assistance when the speed of the vehicle 

21 exceeds 20 miles per hour. 

22 ‘‘(5) CLASS 3 ELECTRIC BICYCLE.—The term 

23 ‘class 3 electric bicycle’ means a two- or three24 wheeled vehicle equipped with an electric motor that 

25 provides assistance only when the rider is pedaling, 


pamtmann on DSKBC07HB2PROD with BILLS
5 

•S 2420 IS

1 and that is not capable of providing assistance when 

2 the speed of the vehicle exceeds 28 miles per hour.’’. 

3 (b) CONFORMING AMENDMENTS.— 

4 (1) Section 6211(b)(4)(A) of such Code is 

5 amended by inserting ‘‘36C,’’ after ‘‘36B,’’. 

6 (2) Paragraph (2) of section 1324(b) of title 

7 31, United States Code, is amended by inserting 

8 ‘‘36C,’’ after ‘‘36B,’’. 

9 (c) CLERICAL AMENDMENT.—The table of sections 

10 for subpart C of part IV of subchapter A of chapter 1 

11 of the Internal Revenue Code of 1986 is amended by in12 serting after the item relating to section 36B the following 

13 new item: 

‘‘Sec. 36C. Electric bicycles.’’. 

14 (d) EFFECTIVE DATE.—The amendments made by 

15 this section shall apply to vehicles placed in service after 

16 the date of the enactment of this Act, in taxable years 

17 ending after such date. 

18 (e) TREASURY REPORT.—Not later than 3 years 

19 after the date of the enactment of this Act, the Secretary 

20 of the Treasury (or the Secretary’s designee) shall make 

21 publicly available a written report specifying the number 

22 of taxpayers claiming the credit allowed under section 36C 

23 of the Internal Revenue Code of 1986 (as added by this 

24 section) and the aggregate dollar amount of such credits 

25 so allowed. Such information shall be stated separately for 


pamtmann on DSKBC07HB2PROD with BILLS
6 

•S 2420 IS

1 taxable years beginning in 2021 and 2022, and shall be 

2 stated separately with respect to each such years with re3 spect to taxpayers in each of the income brackets to which 

4 section 1 of such Code applies. 

Æ 


pamtmann on DSKBC07HB2PROD with BILLS