E-BIKE Act

I 117TH CONGRESS 1ST SESSION H. R. 1019 To amend the Internal Revenue Code of 1986 to provide a credit for the purchase of certain new electric bicycles. IN THE HOUSE OF REPRESENTATIVES FEBRUARY 11, 2021 Mr. PANETTA (for himself, Mr. BLUMENAUER, and Mr. THOMPSON of Cali- fornia) introduced the following bill; which was referred to the Committee on Ways and Means A BILL 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 Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Electric Bicycle Incen- 4 tive Kickstart for the Environment Act’’ or as the ‘‘E- 5 BIKE Act’’. 6 SEC. 2. CREDIT FOR CERTAIN NEW ELECTRIC BICYCLES. 7 (a) IN GENERAL.—Subpart C of part IV of sub- 8 chapter A of chapter 1 of the Internal Revenue Code of 9 VerDate Sep 11 2014 00:25 Mar 09, 2021 Jkt 019200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H1019.IH H1019 pamtmann on DSKBC07HB2PROD with BILLS 2 •HR 1019 IH 1986 is amended by adding at the end the following new 1 section: 2 ‘‘SEC. 36C. ELECTRIC BICYCLES. 3 ‘‘(a) ALLOWANCE OF CREDIT.—In the case of an in- 4 dividual, there shall be allowed as a credit against the tax 5 imposed by this subtitle for any taxable year an amount 6 equal to 30 percent of the cost of any qualified electric 7 bicycle placed in service by the taxpayer during such tax- 8 able year. 9 ‘‘(b) LIMITATION.— 10 ‘‘(1) DOLLAR LIMITATION.—In the case of any 11 taxpayer for any taxable year, the credit allowed 12 under subsection (a) shall not exceed the excess (if 13 any) of— 14 ‘‘(A) $1,500 (twice such amount in the 15 case of a joint return), reduced by 16 ‘‘(B) the aggregate credits allowed to the 17 taxpayer under subsection (a) for the 2 pre- 18 ceding taxable years. 19 ‘‘(2) NUMBER OF BICYCLES.—In the case of 20 any taxpayer for any taxable year, the number of bi- 21 cycles taken into account under subsection (a) shall 22 not exceed the excess (if any) of— 23 ‘‘(A) 1 (2 in the case of a joint return), re- 24 duced by 25 VerDate Sep 11 2014 00:25 Mar 09, 2021 Jkt 019200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H1019.IH H1019 pamtmann on DSKBC07HB2PROD with BILLS 3 •HR 1019 IH ‘‘(B) the aggregate number of bicycles 1 taken into account by the taxpayer under sub- 2 section (a) for the 2 preceding taxable years. 3 ‘‘(c) QUALIFIED ELECTRIC BICYCLE.—For purposes 4 of this section— 5 ‘‘(1) IN GENERAL.—The term ‘qualified electric 6 bicycle’ means a two-wheeled vehicle— 7 ‘‘(A) which is a class 1 electric bicycle, a 8 class 2 electric bicycle, or a class 3 electric bicy- 9 cle, 10 ‘‘(B) which is equipped with— 11 ‘‘(i) pedals capable of propelling such 12 vehicle, 13 ‘‘(ii) a saddle or seat for the rider, 14 and 15 ‘‘(iii) an electric motor of less than 16 750 watts which is capable of propelling 17 such vehicle, 18 ‘‘(C) the original use of which commences 19 with the taxpayer, 20 ‘‘(D) which is acquired for use by the tax- 21 payer in the United States and not for lease or 22 resale, and 23 VerDate Sep 11 2014 00:25 Mar 09, 2021 Jkt 019200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H1019.IH H1019 pamtmann on DSKBC07HB2PROD with BILLS 4 •HR 1019 IH ‘‘(E) which in not property of a character 1 subject to an allowance for depreciation or am- 2 ortization in the hands of the taxpayer. 3 ‘‘(2) LIMITATION BASED ON ACQUISITION 4 COST.—The term ‘qualified electric bicycle’ shall not 5 include any vehicle if the aggregate amount paid for 6 the acquisition of such vehicle exceeds $8,000. 7 ‘‘(3) CLASS 1 ELECTRIC BICYCLE.—The term 8 ‘class 1 electric bicycle’ means a two-wheeled vehicle 9 equipped with an electric motor that provides assist- 10 ance only when the rider is pedaling, that is not ca- 11 pable of providing assistance when the speed of the 12 vehicle exceeds 20 miles per hour, and that is not a 13 class 3 electric bicycle. 14 ‘‘(4) CLASS 2 ELECTRIC BICYCLE.—The term 15 ‘class 2 electric bicycle’ means a two-wheeled vehicle 16 equipped with an electric motor that may be used to 17 propel the vehicle without the need of any additional 18 assistance, and that is not capable of providing as- 19 sistance when the speed of the vehicle exceeds 20 20 miles per hour. 21 ‘‘(5) CLASS 3 ELECTRIC BICYCLE.—The term 22 ‘class 3 electric bicycle’ means a two-wheeled vehicle 23 equipped with an electric motor that provides assist- 24 ance only when the rider is pedaling, and that is not 25 VerDate Sep 11 2014 00:25 Mar 09, 2021 Jkt 019200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H1019.IH H1019 pamtmann on DSKBC07HB2PROD with BILLS 5 •HR 1019 IH capable of providing assistance when the speed of 1 the vehicle exceeds 28 miles per hour.’’. 2 (b) CONFORMING AMENDMENTS.— 3 (1) Section 6211(b)(4)(A) of such Code is 4 amended by inserting ‘‘36C,’’ after ‘‘36B,’’. 5 (2) Paragraph (2) of section 1324(b) of title 6 31, United States Code, is amended by inserting 7 ‘‘36C,’’ after ‘‘36B,’’. 8 (c) CLERICAL AMENDMENT.—The table of sections 9 for subpart C of part IV of subchapter A of chapter 1 10 of the Internal Revenue Code of 1986 is amended by in- 11 serting after the item relating to section 36B the following 12 new item: 13 ‘‘Sec. 36C. Electric bicycles.’’. (d) EFFECTIVE DATE.—The amendments made by 14 this section shall apply to vehicles placed in service after 15 the date of the enactment of this Act, in taxable years 16 ending after such date. 17 (e) TREASURY REPORT.—Not later than 3 years 18 after the date of the enactment of this Act, the Secretary 19 of the Treasury (or the Secretary’s designee) shall make 20 publicly available a written report specifying the number 21 of taxpayers claiming the credit allowed under section 36C 22 of the Internal Revenue Code of 1986 (as added by this 23 section) and the aggregate dollar amount of such credits 24 so allowed. Such information shall be stated separately for 25 VerDate Sep 11 2014 00:25 Mar 09, 2021 Jkt 019200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H1019.IH H1019 pamtmann on DSKBC07HB2PROD with BILLS 6 •HR 1019 IH taxable years beginning in 2021 and 2022, and shall be 1 stated separately with respect to each such years with re- 2 spect to taxpayers in each of the income brackets to which 3 section 1 of such Code applies. 4 Æ VerDate Sep 11 2014 00:25 Mar 09, 2021 Jkt 019200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6301 E:\BILLS\H1019.IH H1019 pamtmann on DSKBC07HB2PROD with BILLS