How to Get a Tax Return for E-bike Purchases
Governments worldwide are getting worried about the environmental impact of their industries as the world shifts to a more sustainable future.
After acquiring a deeper understanding of the country's severe impact on the planet's health, the US government started offering incentives to US citizens to help reduce the country's carbon footprint. One of these tax incentives is meant to make e-bikes and electric motorcycles more affordable for the average American.
With cheaper E-bikes available on the market, citizens can opt to commute to work or school with them instead of their cars or motorcycles, lowering carbon production.
The Growing Popularity of E-bikes
E-bikes build upon the concept of regular bikes by adding batteries to increase their power while decreasing the effort required to pedal.
While it's a simple change, it makes tasks like pedaling through difficult terrain or steep hills significantly easier and faster. The ease of use coupled with low costs and tax credits earned by purchasing E-bikes made them a part of the daily life of many Americans.
According to the Media group at Deloitte, E-bike acceptance is growing, with sales expected to reach 130 million by 2023, injecting over $20 billion into the economy while helping reduce the carbon footprint.
How The Build Back Better Act Affects E-bike Purchases
Introduced in 2021 by congressman Earl Blumenauer and Jimmy Panetta of the democratic party and passed in November 2021, the bill intends to make citizens leave their motorbikes and cars at home in favor of the cheaper and ecologically friendly E-bikes.
Before the bill, citizens had to pay full price when purchasing an E-bike. However, with the possibility of writing off eligible E-bike acquisitions, congress is pushing for greater adoption of alternatives covered by the bill.
The bill even allows Americans using their E-bikes for work (e.g., couriers) to deduct up to 30% of the E-bike, riding, parking, maintenance, and repair when filing their tax forms.
Are You Eligible for a Tax Return?
When it comes to eligibility for tax returns, the current version of the bill offers a 30% tax credit for e-bikes under certain criteria.
Individuals must make at most $75,000 a year to qualify for the maximum tax credit of $900. The bill also allows joint fillers that earn at most $150,000 a year to be eligible for up to two E-bikes per household. However, if you're above this bracket, the act doesn't support your acquisitions yet.
The second requirement is the price. E-bikes must be priced under $4,000 to qualify for the credit offered by the act.
Taxes When Buying an E-bike
While the government is strongly pushing for E-bikes, it doesn't mean they're tax-free.
Many states still employ sales taxes. So it may be worth shopping around states online if you're looking for a deal, as some states like Montana don't employ a sales tax.
Where to Find Eligible E-Bikes
If you're looking to save on gas, taxes, and get healthier, picking up an E-bike can ensure you achieve those goals while lowering the planet's carbon. Just look for an E-bike that suits your needs, fits your budget, and gets covered by the act.
You don't need to go far to find the perfect E-bike and get your tax credit. At Mokwheel, all our E-bikes fall under the act's requirements, ensuring you get a quality product for a friendly price. So visit our website today to find safe, reliable, feature-rich, and sturdy E-bikes and accessories at an affordable price!