Electric Bicycle Incentive Kickstart for the Environment Act
Bill: S.2420 | Sponsor: Sen. Schatz, Brian (D-HI)
Policy area: Taxation

Summary:
Electric Bicycle Incentive Kickstart for the Environment Act or the E-BIKE Act
This bill allows a refundable tax credit for 30% of the cost of a qualified electric bicycle. The credit is limited to $1,500 per taxpayer less all credits allowed for the two preceding taxable years.
A qualified electric bicycle is a two- or three-wheeled vehicle that is, among other things, equipped with an electric motor of less than 750 watts that is capable of propelling such vehicle.

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 Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Electric Bicycle Incentive 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 subchapter A of chapter 1 
of the Internal Revenue Code of 1986 is amended by adding at the end 
the following new section:

``SEC. 36C. ELECTRIC BICYCLES.

    ``(a) Allowance of Credit.--In the case of an individual, there 
shall be allowed as a credit against the tax imposed by this subtitle 
for any taxable year an amount equal to 30 percent of the cost of any 
qualified electric bicycle placed in service by the taxpayer during 
such taxable year.
    ``(b) Limitation.--
            ``(1) Dollar limitation.--In the case of any taxpayer for 
        any taxable year, the credit allowed under subsection (a) shall 
        not exceed the excess (if any) of--
                    ``(A) $1,500 (twice such amount in the case of a 
                joint return), reduced by
                    ``(B) the aggregate credits allowed to the taxpayer 
                under subsection (a) for the 2 preceding taxable years.
            ``(2) Number of bicycles.--In the case of any taxpayer for 
        any taxable year, the number of bicycles taken into account 
        under subsection (a) shall not exceed the excess (if any) of--
                    ``(A) 1 (2 in the case of a joint return), reduced 
                by
                    ``(B) the aggregate number of bicycles taken into 
                account by the taxpayer under subsection (a) for the 2 
                preceding taxable years.
    ``(c) Qualified Electric Bicycle.--For purposes of this section--
            ``(1) In general.--The term `qualified electric bicycle' 
        means a two- or three-wheeled vehicle--
                    ``(A) which is a class 1 electric bicycle, a class 
                2 electric bicycle, or a class 3 electric bicycle,
                    ``(B) which is equipped with--
                            ``(i) pedals capable of propelling such 
                        vehicle,
                            ``(ii) a saddle or seat for the rider, and
                            ``(iii) an electric motor of less than 750 
                        watts which is capable of propelling such 
                        vehicle,
                    ``(C) the original use of which commences with the 
                taxpayer,
                    ``(D) which is acquired for use by the taxpayer in 
                the United States and not for lease or resale, and
                    ``(E) which is not property of a character subject 
                to an allowance for depreciation or amortization in the 
                hands of the taxpayer.
            ``(2) Limitation based on acquisition cost.--The term 
        `qualified electric bicycle' shall not include any vehicle if 
        the aggregate amount paid for the acquisition of such vehicle 
        exceeds $8,000.
            ``(3) Class 1 electric bicycle.--The term `class 1 electric 
        bicycle' means a two- or three-wheeled vehicle equipped with an 
        electric motor that provides assistance only when the rider is 
        pedaling, that is not capable of providing assistance when the 
        speed of the vehicle exceeds 20 miles per hour, and that is not 
        a class 3 electric bicycle.
            ``(4) Class 2 electric bicycle.--The term `class 2 electric 
        bicycle' means a two- or three-wheeled vehicle 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 assistance when the speed of the vehicle exceeds 
        20 miles per hour.
            ``(5) Class 3 electric bicycle.--The term `class 3 electric 
        bicycle' means a two- or three-wheeled vehicle equipped with an 
        electric motor that provides assistance 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.''.
    (b) Conforming Amendments.--
            (1) Section 6211(b)(4)(A) of such Code is amended by 
        inserting ``36C,'' after ``36B,''.
            (2) Paragraph (2) of section 1324(b) of title 31, United 
        States Code, is amended by inserting ``36C,'' after ``36B,''.
    (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 inserting after the item relating to section 36B the 
following new item:

``Sec. 36C. Electric bicycles.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to vehicles 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 designee) 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 2021 and 2022, and shall be stated separately with respect to each 
such years with respect to taxpayers in each of the income brackets to 
which section 1 of such Code applies.
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