E-Bike Tax Credits and Incentives: How to Save Money in 2024 (2024)

FAQs

E-Bike Tax Credits and Incentives: How to Save Money in 2024? ›

Federal E-Bike Incentive Program 2024

For example, if you took delivery of an EV eligible for a $7500 tax credit in 2024 and your federal tax for that year was $8500, your total tax would be $1000. You would then pay the balance of whatever you owe or elect to be refunded the credit's amount (or apply the refund to the next tax year).

The E-bike Act consumer tax credit was introduced in 2021 to help people who want to buy an electric bike commute. It provides a tax credit for an e-bike of up to 30% of the cost of the e-bike, with a maximum value of up to $1500 for an e-bike that costs less than $8000.

The California E-Bike Incentive Project provides up to $2,000 of point-of-sale incentives to support the purchase of a new electric bicycle (e-bike). The California E-Bike Incentive Project is funded by the California Air Resources Board (CARB).

Electric Bicycle Incentive Kickstart for the Environment Act or the E-BIKE Act. This bill allows individual taxpayers a new tax credit for 30% of the cost of a qualified electric bicycle.

File Form 8936 with your tax return

You must file Form 8936 when you file your tax return for the year in which you take delivery of the vehicle. This is true whether you transferred the credit at the time of sale or you're waiting to claim the credit when you file.

See, Form 8936, Qualified Plug-in Electric Drive Motor Vehicle Credit PDF and the General Instructions for Form 8936 for more specific information. The Section 30D(g) credit previously offered a credit for both 2- and 3-wheeled plug-in electric vehicles.

You could claim it as a work-related expense if you bought the bicycle specifically for work. You might have a job outdoors that requires you to get around and a bicycle is the best way to do it. Assuming your employer hasn't provided one, then a bicycle could be a great tool to get the job done.

Biden's Chinese tariffs could hamper e-bike sales in the U.S.—but an even bigger threat looms when a tariff exclusion expires on June 14. In May, the Biden administration slapped new tariffs on a range of Chinese goods, including a 100% levy on electric vehicles.

What is the federal tax credit for e-bikes in 2024? ›

This incentive is designed to make e-bikes more affordable for the average consumer and encourage more people to consider e-bikes as a viable transportation option. Here are the key details: Credit Amount: The program provides a tax credit of 30% of the cost of the e-bike, up to a maximum credit of $900.

To begin your delivery journey, register for a well-known delivery platform like Uber Eats, DoorDash, or Grubhub. Each platform may have specific requirements, but having an e-bike often fulfills them all for eco-friendly and efficient delivery - make sure it's in top shape, charge its battery, and you're good to go.

Who qualifies. You may qualify for a credit up to $7,500 under Internal Revenue Code Section 30D if you buy a new, qualified plug-in EV or fuel cell electric vehicle (FCV). The Inflation Reduction Act of 2022 changed the rules for this credit for vehicles purchased from 2023 to 2032.

Many have found that the investment in an e-bike paid for itself within a year or two thanks to the significant reduction in transportation costs. Take a moment to consider how much you would be able to save. After all, an e-bike will pay for itself within a short time.

The federal speed limit for eBikes is 20 miles per hour or less under motor power alone. The tiered classification system, adopted by many states, also specifies this speed limit. That classification sets 20 miles per hour as the legal limit for Class 1 & 2 bikes.

So far, the EBike Act is just a Bill; it was introduced in February 2021 and has not passed at the time of writing. The Act currently has twenty co-sponsors. Use the links below to contact your state's representative to let them know that you support the EBike Act using the list below: Rep.

CalEITC can be worth up to $3,529, while YCTC and FYTC can be up to $1,117. Individuals earning less than $63,398 may also qualify for the federal EITC. Your family could receive up to $12,076 from CalEITC, YCTC, and the federal EITC.

If you're eligible for $7,500, the dealer credits you for that money as though you'd brought it in as cash. Then the dealer submits documentation to the IRS, and the IRS pays back the dealer that $7,500 — effectively meaning the tax credit is being handled through the dealership.

But after getting comment from the auto industry and others, treasury officials decided to loosen that restriction. The rule issued Friday is likely to make more EVs eligible for credits in 2025 and 2026, but the auto industry says that's difficult to tell until automakers finish tracing the origin of all the minerals.

If you don't owe any money on your income taxes, the only way to take advantage of the federal EV tax credit on a car is to transfer it to the dealership you're buying from. It then can be applied as a discount on the purchase.