In the past ten years, the United States has spent approximately US$10 billion through tax credits to subsidize the purchase of electric vehicles. However, none of the money went to the world’s best-selling and fastest-growing electric car—a dynamic vehicle that is more efficient than any Tesla or Nissan Leaf. Of course it is an electric bicycle.

But according to the "Rebuild Better" spending bill passed by the House of Representatives last month and awaiting action by the Senate, electric bicycles may be promoted by the federal government for the first time. In its more than 2,000 pages of content, there is an electric bicycle tax credit of up to $900.

If the incentives are intact, the electric bike manufacturers who lobbied to include them will win (battery-assisted). Mike Radenbaugh, CEO of the startup Rad Power Bikes, said: "If all goes well, things will change." "We think electric bikes should eventually receive wider support... But we really It’s great to see that we are at least heading in the right direction."

Unprecedented benefits: employers are bending back to prevent you from quitting

The veterinarian’s $100,000 signing bonus? COVID has changed the working lives of Americans. Employees demand more and employers are willing to help others.

This is an important milestone for an industry that hardly existed a decade ago. "Considering that many people didn't know what electric bicycles are a few years ago, the fact that there are incentives for electric bicycles in the federal climate drastic bill is very remarkable," said Professor Christopher Cherry (Christopher Cherry). In the Department of Civil and Environmental Engineering at the University of Tennessee Knoxville.

Currently, the bill provides a 30% credit for the purchase of a new electric bike of up to US$3,000, excluding bicycles priced at more than US$4,000. (Credits are also phased out starting at $75,000 for a single taxpayer based on household income.) This is a reduction from the original proposal. In the bill submitted to the House of Representatives, the credit covers 30% of the $8,000 bicycle expenditure within $5,000.

"This is a blow to us," said Steve Boyd, general manager of Tern Bicycles North America. The company's most expensive cargo electric bikes cost more than $9,000. Under the initial price ceiling, all models except one model from Tern met the requirements; now all but a few are excluded. Boyd says that this low barrier may keep some customers away from the best bicycles that meet their needs. For example, the price of Tern's foldable freight electric bicycles is not less than $4,000.

Noa Banayan, head of federal affairs at PeopleForBikes, a trade association that lobbies on behalf of bicycle manufacturers, said credit cuts were a natural part of the House of Representatives' passage of the bill. "Of course, we want the most people to get the most credit," Banayan said, "but we are excited about anything that puts electric bicycles on the federal map because we think this is just the first step."

For Rad Power, which sells electric bicycles online at prices ranging from US$1,000 to US$2,000, the lower ceiling is very suitable. "Most electric bike companies may not see huge benefits, but I think Rad is an outsider in this regard," Radenbaugh said.

Data from the NPD Group, which tracks sales in bicycle stores and outdoor stores, shows that purchases of electric bicycles tend to be concentrated at the top and bottom of the scale. Nearly 60% of bicycles sold during the 12-month period ending in September were either less than $500 or more than $3,500. However, the fastest growth occurred in the middle: unit sales of bicycles priced between US$1,500 and US$2,000 have increased by 176% in the past 12 months.

Cherry said there are few academic studies on how prices affect consumer preferences in the electric bike market. He and his collaborator John MacArthur of Portland State University are currently conducting a study to solve these problems.

In the absence of data, Congress can only guess at the level of incentives to persuade most people to buy electric bikes with as little expenditure as possible. "We don't know what that sweet spot is," MacArthur said.

For the time being, Congress seems to be taking the approach that, rather than helping potential cargo bike customers overcome the impact of stickers, it is better to prevent wealthy weekend warriors from using credit cards for a drive. For some electric bike brands, this may mean adjusting prices to accommodate tax laws. "If the limit stays the same," Tern's Boyd said, "and our bikes can be used normally for $4,200, then we might end up with $3,999."

Your guide to a clean energy future

Get our Boiling Point newsletter to get the latest information about the power industry, water wars, and more—and what they mean for California.

You may occasionally receive promotional content from the Los Angeles Times.

More from the Los Angeles Times

Bond traders stare at the worst actual returns in decades

Hard Rock acquires MGM's Mirage Resort in Las Vegas for US$1.08 billion

Affected by technology and energy, the stock market fell back from record

California proposes major adjustments to rooftop solar incentives

These are the 101 best restaurants in Los Angeles

The 101 best restaurants in Los Angeles in 2021 are here

Column: The journey of Vicente Fernández is the journey of our parents. Wish them longevity

Due to the increasing number of coronavirus cases, California began to require statewide mask requirements from Wednesday

Generations of Mexican music icon Vicente Fernández (Vicente Fernández) dies at the age of 81

Column: Rand Paul calls for federal disaster assistance for Kentucky after voting against everyone else

Column: Hertz symbolizes all the mistakes of American companies

Why your holiday wine will cost more this year

The inflation rate is painfully high, but it may be relieved