Tax Break For Electric Bicycles

It seems that there is never a shortage of reasons to love your electric bicycle and there is even more good news on the way for those among us planning on buying an electric bike or an electric motorcycle in the near future.

In addition to all of the more commonly known benefits of riding an electric bike, now there is a significant tax incentive to add to the list. A 10% tax credit was approved by the Senate Finance Committee for electric bicycles as well as electric motorcycles with a cap at $2,500.

Democratic Senator Ron Wyden of Oregon can be credited for introducing the amendment to revive the 2009 tax credit which was part of the $800 billion federal stimulus package.

Electric powered two wheelers have been without a federal purchase incentive since the beginning of 2012, when the credit originally introduced in 2009 expired. At this time, some electric automobiles have up to a $7,500 tax credit, depending on certain factors. For example, Chevy Volt owners may recieve up to $7,500 in tax rebates, while a plug-in Prius owner maxes out at $2,500.

Backers of the bill suggest that consumer incintives will encourage domestic job creation and maintenance. This seems to be an intelligent move considering the 43.39% compound annual growth rate (CAGR) of electric vehicles is expected to hold up until 2017.

The electric vehicle market is growing quicker than anyone expected. It should come as no surprise when considering many of the factors at play. As mentioned before there has been and continue to be government support of EV technology and production. Consumer awareness and demand are also factored in while environmental issues are in the forefront of more and more minds these days and play an important role in consumer spending, which in itself is on the rise. Rising oil prices and depleting crude reserves as well as an increase in pollution can be credited with this unexpected boost in EV popularity and production as well.

Electric vehicles produce zero tail pipe emissions (if they even have a tail pipe), consume less fuel, and have lower running costs. With the population growing, electric vehicles are expected to become the preferred method of transportation in the years to come.

Electric two wheelers were the dominating forces leading globally to a near $54 billion USD turnover in 2011. It seems now is as good a time as ever to join the EV revolution and start to save.