The news: A bill was introduced in the US Senate that would offer a 30% tax credit of up to $1,500 on the purchase of new electric bikes, per Elektrek. This bill is a companion to the E-BIKE Act introduced in the House in February.
More on this: Ebike sales in the US grew 145% from 2019 to 2020, per research from NPD Group cited by The New York Times. The growth was mostly spurred by people’s need to get around while remaining socially distanced during the pandemic. Demand for ebikes remains high with 600,000 sold last year in the US.
Why it’s worth watching: If ebikes, which cost anywhere from $1,000 to $6,500, can get similar incentives to those given for EVs, it could significantly boost adoption.
The catch: Subsidizing the cost of ebikes is a promising start, but more needs to be done to improve the country’s infrastructure for dedicated bike lanes to convince most drivers to switch to ebikes.