I 
118TH CONGRESS 
1ST SESSION H. R. 1685 
To amend the Internal Revenue Code of 1986 to provide a credit for the 
purchase of certain new electric bicycles. 
IN THE HOUSE OF REPRESENTATIVES 
MARCH 21, 2023 
Mr. PANETTA (for himself, Mr. BLUMENAUER, Mr. THOMPSON of California, 
and Mr. SCHIFF) introduced the following bill; which was referred to the 
Committee on Ways and Means 
A BILL 
To amend the Internal Revenue Code of 1986 to provide 
a credit for the purchase of certain new electric bicycles. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Electric Bicycle Incen-
tive Kickstart for the Environment Act’’ or as the ‘‘E- 
BIKE Act’’. 
SEC. 2. CREDIT FOR CERTAIN NEW ELECTRIC BICYCLES. 
(a) IN GENERAL.—Subpart C of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of 
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1986 is amended by inserting after section 36B the fol-
lowing new section: 
‘‘SEC. 36C. ELECTRIC BICYCLES. 
‘‘(a) ALLOWANCE OF CREDIT.—In the case of an in-
dividual, there shall be allowed as a credit against the tax 
imposed by this chapter for the taxable year an amount 
equal to 30 percent of the cost of each qualified electric 
bicycle placed in service by the taxpayer during such tax-
able year. 
‘‘(b) LIMITATIONS.— 
‘‘(1) LIMITATION ON COST PER BICYCLE TAKEN 
INTO
ACCOUNT.—The amount taken into account 
under subsection (a) as the cost of any qualified 
electric bicycle shall not exceed $5,000. 
‘‘(2) LIMITATION ON NUMBER OF BICYCLES.— 
In the case of any taxpayer for any taxable year, the 
number of qualified electric bicycles taken into ac-
count under subsection (a) shall not exceed the ex-
cess (if any) of— 
‘‘(A) 1 (2 in the case of a joint return), re-
duced by 
‘‘(B) the aggregate number of qualified 
electric bicycles taken into account by the tax-
payer under subsection (a) for the 2 preceding 
taxable years. 
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‘‘(3) PHASEOUT BASED ON INCOME.— 
‘‘(A) PHASEOUT BASED ON MODIFIED AD-
JUSTED
GROSS
INCOME.—The credit allowed 
under subsection (a) shall be reduced by $100 
for each $1,000 (or fraction thereof) by which 
the taxpayer’s modified adjusted gross income 
exceeds— 
‘‘(i) $300,000 in the case of a joint 
return or a surviving spouse (as defined in 
section 2(a)), 
‘‘(ii) $225,000 in the case of a head 
of household (as defined in section 2(b)), 
and 
‘‘(iii) $150,000 in the case of a tax-
payer not described in clause (i) or (ii). 
‘‘(B) SPECIAL RULE FOR MODIFIED AD-
JUSTED
GROSS
INCOME
TAKEN
INTO
AC-
COUNT.—The modified adjusted gross income 
of the taxpayer that is taken into account for 
purposes of subparagraph (A) shall be the less-
er of— 
‘‘(i) the modified adjusted gross in-
come for the taxable year with respect to 
which the credit is claimed, or 
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‘‘(ii) the modified adjusted gross in-
come for the immediately preceding taxable 
year. 
‘‘(C) MODIFIED
ADJUSTED
GROSS
IN-
COME.—For purposes of subparagraph (A), the 
term ‘modified adjusted gross income’ means 
adjusted gross income increased by any amount 
excluded from gross income under section 911, 
931, or 933. 
‘‘(c) QUALIFIED ELECTRIC BICYCLE.—For purposes 
of this section— 
‘‘(1) IN GENERAL.—The term ‘qualified electric 
bicycle’ means a bicycle or tricycle— 
‘‘(A) the original use of which commences 
with the taxpayer, 
‘‘(B) which is acquired for use by the tax-
payer and not for resale, 
‘‘(C) which is not property of a character 
subject to an allowance for depreciation or am-
ortization in the hands of the taxpayer, 
‘‘(D) which is made by a qualified manu-
facturer and is labeled with the qualified vehicle 
identification number assigned to such bicycle 
or tricycle by such manufacturer, 
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‘‘(I) which is not capable of exceeding the 
speed limitation in paragraph (2) by means of 
any electronic switch, setting or software modi-
fication provided or made available by the man-
ufacturer, and 
‘‘(J) which has a drive system that has 
been certified by an accredited laboratory to 
Underwriters Laboratory (UL) standard UL 
2849, or a battery that has been certified to 
any of the battery safety standards listed in 
such standard UL 2849 or such other drive sys-
tem or battery safety standard as may be recog-
nized by the United States Consumer Product 
Safety Commission. 
‘‘(2) CLASS
ELECTRIC
BICYCLE
OR
TRI-
CYCLE.—The term ‘class 1 electric bicycle or tri-
cycle’ means a two- or three-wheeled vehicle 
equipped with an electric motor that provides assist-
ance only when the rider is pedaling, that is not ca-
pable of providing assistance when the speed of the 
vehicle exceeds 20 miles per hour, and that is not a 
class 3 electric bicycle or tricycle. 
‘‘(3) CLASS
ELECTRIC
BICYCLE
OR
TRI-
CYCLE.—The term ‘class 2 electric bicycle or tri-
cycle’ means a two- or three-wheeled vehicle 
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equipped with an electric motor that may be used to 
propel the vehicle without the need of any additional 
assistance, and that is not capable of providing as-
sistance when the speed of the vehicle exceeds 20 
miles per hour. 
‘‘(4) CLASS
ELECTRIC
BICYCLE
OR
TRI-
CYCLE.—The term ‘class 3 electric bicycle or tri-
cycle’ means a two- or three-wheeled vehicle 
equipped with an electric motor that provides assist-
ance only when the rider is pedaling, and that is not 
capable of providing assistance when the speed of 
the vehicle exceeds 28 miles per hour. 
‘‘(d) SPECIAL RULE FOR BICYCLES USED BY AN IN-
DIVIDUAL IN A TRADE OR BUSINESS.—In the case of any 
bicycle or tricycle with respect to which the taxpayer elects 
(at such time and in such manner as the Secretary may 
provide) the application of this subsection— 
‘‘(1) subsections (c)(1)(C) and (f)(2) shall not 
apply with respect to such bicycle or tricycle, and 
‘‘(2) no deduction (including any deduction for 
depreciation or amortization) or credit (other than 
the credit allowed under this section) shall be al-
lowed for the cost of such bicycle or tricycle. 
‘‘(e) VIN NUMBER REQUIREMENT.— 
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‘‘(1) IN GENERAL.—No credit shall be allowed 
under subsection (a) with respect to any qualified 
electric bicycle unless the taxpayer includes the 
qualified vehicle identification number of such bicy-
cle on the return of tax for the taxable year. 
‘‘(2) 
QUALIFIED
VEHICLE
IDENTIFICATION 
NUMBER.—For purposes of this section, the term 
‘qualified vehicle identification number’ means, with 
respect to any qualified electric bicycle, the vehicle 
identification number assigned to such bicycle by a 
qualified manufacturer pursuant to the methodology 
referred to in paragraph (3)(A). 
‘‘(3) QUALIFIED
MANUFACTURER.—For pur-
poses of this section, the term ‘qualified manufac-
turer’ means any manufacturer of qualified electric 
bicycles which enters into an agreement with the 
Secretary which provides that such manufacturer 
will— 
‘‘(A) assign a vehicle identification number 
to each qualified electric bicycle produced by 
such manufacturer utilizing a methodology that 
will ensure that such number (including any al-
phanumeric) is unique to such bicycle (by uti-
lizing numbers or letters which are unique to 
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such manufacturer or by such other method as 
the Secretary may provide), 
‘‘(B) label such bicycle with such number 
in such manner as the Secretary may provide, 
and 
‘‘(C) make periodic written reports to the 
Secretary (at such times and in such manner as 
the Secretary may provide) of the vehicle identi-
fication numbers so assigned and including 
such information as the Secretary may require 
with respect to the qualified electric bicycle to 
which such number was so assigned. 
‘‘(f) SPECIAL RULES.— 
‘‘(1) BASIS REDUCTION.—For purposes of this 
subtitle, the basis of any property for which a credit 
is allowable under subsection (a) shall be reduced by 
the amount of such credit so allowed. 
‘‘(2) NO
DOUBLE
BENEFIT.—The amount of 
any deduction or other credit allowable under this 
chapter for a qualified electric bicycle for which a 
credit is allowable under subsection (a) shall be re-
duced by the amount of credit allowed under such 
subsection for such bicycle. 
‘‘(3) PROPERTY USED OUTSIDE UNITED STATES 
NOT QUALIFIED.—No credit shall be allowable under 
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subsection (a) with respect to any property referred 
to in section 50(b)(1). 
‘‘(4) RECAPTURE.—The Secretary shall, by reg-
ulations or other guidance, provide for recapturing 
the benefit of any credit allowable under subsection 
(a) with respect to any property which ceases to be 
property eligible for such credit. 
‘‘(5) ELECTION
NOT
TO
TAKE
CREDIT.—No 
credit shall be allowed under subsection (a) for any 
qualified electric bicycle if the taxpayer elects to not 
have this section apply to such bicycle. 
‘‘(g) TREATMENT OF CERTAIN POSSESSIONS.— 
‘‘(1) PAYMENTS TO POSSESSIONS WITH MIRROR 
CODE TAX SYSTEMS.—The Secretary shall pay to 
each possession of the United States which has a 
mirror code tax system amounts equal to the loss (if 
any) to that possession by reason of the application 
of the provisions of this section (determined without 
regard to this subsection). Such amounts shall be 
determined by the Secretary based on information 
provided by the government of the respective posses-
sion. 
‘‘(2) PAYMENTS TO OTHER POSSESSIONS.—The 
Secretary shall pay to each possession of the United 
States which does not have a mirror code tax system 
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amounts estimated by the Secretary as being equal 
to the aggregate benefits (if any) that would have 
been provided to residents of such possession by rea-
son of the provisions of this section if a mirror code 
tax system had been in effect in such possession. 
The preceding sentence shall not apply unless the re-
spective possession has a plan which has been ap-
proved by the Secretary under which such possession 
will promptly distribute such payments to its resi-
dents. 
‘‘(3) MIRROR CODE TAX SYSTEM; TREATMENT 
OF PAYMENTS.—Rules similar to the rules of para-
graphs (3), (4), and (5) of section 21(h) shall apply 
for purposes of this section. 
‘‘(h) TRANSFER OF CREDIT.— 
‘‘(1) IN GENERAL.—Subject to such regulations 
or other guidance as the Secretary determines nec-
essary or appropriate, if the taxpayer who acquires 
a qualified electric bicycle is an individual and elects 
the application of this subsection with respect to 
such qualified electric bicycle, the credit which would 
(but for this subsection) be allowed to such taxpayer 
with respect to such qualified electric bicycle shall be 
allowed to the eligible entity specified in such elec-
tion (and not to such taxpayer). 
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‘‘(2) ELIGIBLE ENTITY.—For purposes of this 
paragraph, the term ‘eligible entity’ means, with re-
spect to the qualified electric bicycle for which the 
credit is allowed under subsection (a), the retailer 
which sold such qualified electric bicycle to the tax-
payer and has— 
‘‘(A) subject to paragraph (4), registered 
with the Secretary for purposes of this para-
graph, at such time, and in such form and 
manner, as the Secretary may prescribe, 
‘‘(B) prior to the election described in 
paragraph (1) and no later than at the time of 
such sale, disclosed to the taxpayer purchasing 
such qualified electric bicycle— 
‘‘(i) the retail price, 
‘‘(ii) the value of the credit allowed or 
other incentive available for the purchase 
of such qualified electric bicycle, 
‘‘(iii) all fees associated with the pur-
chase of such qualified electric bicycle, and 
‘‘(iv) the amount provided by the re-
tailer to such taxpayer as a condition of 
the election described in paragraph (1), 
‘‘(C) made payment to such taxpayer 
(whether in cash or in the form of a partial 
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under this section with respect to such qualified 
electric bicycle were allowed to such taxpayer, 
and 
‘‘(C) subsection (f)(5) shall not apply. 
‘‘(7) ADVANCE PAYMENT TO REGISTERED RE-
TAILERS.— 
‘‘(A) IN
GENERAL.—The Secretary shall 
establish a program to make advance payments 
to any eligible entity in an amount equal to the 
cumulative amount of the credits allowed under 
subsection (a) with respect to any qualified elec-
tric bicycles sold by such entity for which an 
election described in paragraph (1) has been 
made. 
‘‘(B) EXCESSIVE PAYMENTS.—Rules simi-
lar to the rules of section 6417(c)(6) shall apply 
for purposes of this paragraph. 
‘‘(8) RETAILER.—For purposes of this sub-
section, the term ‘retailer’ means a person engaged 
in the trade or business of selling qualified electric 
bicycles in a State, the District of Columbia, the 
Commonwealth of Puerto Rico, or any other terri-
tory or possession of the United States.’’. 
(b) CONFORMING AMENDMENTS.— 
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(1) Section 1016(a) of the Internal Revenue 
Code of 1986 is amended by striking ‘‘and’’ at the 
end of paragraph (37), by striking the period at the 
end of paragraph (38) and inserting ‘‘, and’’, and by 
adding at the end the following new paragraph: 
‘‘(39) to the extent provided in section 
36C(f)(1).’’. 
(2) Section 6211(b)(4)(A) of such Code is 
amended by inserting ‘‘36C,’’ after ‘‘36B,’’. 
(3) Section 6213(g)(2) of such Code is amend-
ed— 
(A) in subparagraph (U), by striking 
‘‘and’’ at the end, 
(B) in subparagraph (V), by striking the 
period at the end and inserting ‘‘, and’’, and 
(C) by adding at the end the following: 
‘‘(W) an omission of a correct vehicle iden-
tification number required under section 36C(e) 
(relating to electric bicycles credit) to be in-
cluded on a return.’’. 
(4) Section 6501(m) of such Code is amended 
by inserting ‘‘36C(f)(5),’’ after ‘‘35(g)(11),’’. 
(5) Section 1324(b)(2) of title 31, United 
States Code, is amended by inserting ‘‘36C,’’ after 
‘‘36B,’’. 
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(c) CLERICAL AMENDMENT.—The table of sections 
for subpart C of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 is amended by add-
ing at the end the following new item: 
‘‘Sec. 36C. Electric bicycles.’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to property placed in service after 
the date of the enactment of this Act, in taxable years 
ending after such date. 
(e) TREASURY REPORT.—Not later than 3 years 
after the date of the enactment of this Act, the Secretary 
of the Treasury (or the Secretary’s delegate) shall make 
publicly available a written report specifying the number 
of taxpayers claiming the credit allowed under section 36C 
of the Internal Revenue Code of 1986 (as added by this 
section) and the aggregate dollar amount of such credits 
so allowed. Such information shall be stated separately for 
taxable years beginning in 2023 and 2024, and shall be 
stated separately with respect to each such years with re-
spect to taxpayers in each of the income brackets to which 
section 1 of such Code applies. 
Æ 
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