Editorial: Build Back Better has some bike benefits
Published 5:30 pm Monday, December 6, 2021
For kind of bike-crazy Bend, there are boons in the Build Back Better Act for bikes. There’s a commuter tax benefit and also a 30% refundable tax credit for e-bikes.
Oregon’s Rep. Earl Blumenauer, D-Portland, told us about them a few days ago. It should be no surprise he is involved. If you are familiar with Blumenauer, you know he is on the more fanatic end of the bike scale.
When he came to serve in Congress in 1996, the Democrat hit the ground biking, and with his bow ties. He’s the co-chair of the Congressional Bike Caucus. He told us he doesn’t put as many miles as he used to on his bikes, but his love for them hasn’t faltered.
The commuter tax benefit is something Blumenauer has championed in the past. Now it’s in Build Back Better. He has wanted to allow people who commute by bike to get a pre-tax benefit. After all, that’s how transit and ride-share tax benefits get treated. Blumenauer has pushed for the same benefits for people who bike to work. It might mean about $81 a month for some bike commuters, according to his staff.
Blumenauer has teamed up in the past with Rep. Jimmy Panetta, a California Democrat, for the e-bike tax credit. In the Build Back Better Act, it’s rather detailed. Here’s a rundown:
It’s a 30% refundable tax credit for qualified electric bicycles placed into service before Jan. 1, 2026.
Taxpayers will be able to claim a credit for e-bikes in the United States — one per taxpayer, two for joint filers. The credit starts phasing out as people make more money, beginning at $75,000 of adjusted gross income.
It would not apply to all e-bikes. The electric motor’s limit must be less than 750 watts and must be designed to be pedal-assist. In other words, it only switches on if the person is pedaling.
The maximum credit is $900. It would only be for e-bikes for no more than $4,000, which would not cover some of the more expensive e-bikes. The credit would be transferred to the bike seller at the time of sale. And there’s even more detail to it all than that.
Both these bike boons come with costs to taxpayers. The tax break for e-bikes could be $4.1 billion. That’s an enormous incentive and push for the industry. Of course, if it gets more people out of cars and on bikes, it could help reduce congestion and be better for the planet.
There’s much more to the Build Back Better Act than these bike incentives. We don’t imagine as the Senate considers the bill these pieces alone will make or break their support. But it is an aspect of the bill that may get debate in the Senate. You can tell Oregon Sens. Jeff Merkley and Ron Wyden what you think: www.merkley.senate.gov/contact and www.wyden.senate.gov/contact.