30% TAX CREDIT for Electric Bikes? 5 Things You Need To Know

There are 5 things I think you 
should know about the upcoming   30% federal tax credit that 
applies towards electric bikes. Yes, this is perfect timing US Air Force, US Air 
Force. We don't have all of the information yet.   Everything we have is based on this press 
release here, it's only two pages. I can   read you the first paragraph. It says “Today, 
Congressman Jimmy Panetta and Congressional   Black Caucus Chairman Earl Blumenauer introduced 
the electric bicycle incentive kickstart for   the environment.

That stands for ebike. Clever. 
The act encourages the use of electric bicycles   or ebikes through a consumer tax credit due to the 
distance, speed and ease by which they can travel. That was easy! Ebikes will help replace vehicle trips and 
commutes and reduce carbon emissions. Of course,   there's the big push that we'll probably 
get this through is the carbon emissions.   And then this giant paragraph right here 
is basically a link to a study about that. The rest of the press release 
are basically quotes from   bicycle organizations around the country that 
support the 30% tax credit.

There's not a lot   of meat or substance to this press release, 
but I'm going to share what we do know and   a little bit of speculation about whether or 
not I think this is going to actually happen. Number one. And I think the most important thing 
to understand is. What is a federal tax credit?   If you've never used one, then it may be a little 
bit confusing. Does that mean you actually get 30%   off the cost of the bike when you purchase 
it? No. So this is something that you need   to be aware of. How do you actually apply 
or take advantage of this? If it goes into   effect, now I have actually purchased and 
leased some electric vehicles and there are   federal tax credits. So I'm familiar with 
how the process works for those. I'm going   to assume this is going to be very similar. 
Let's say you have a bicycle that costs $1,500.

You're going to get 30% as a tax credit. That 
means that you're going to have to pay the full   retail price of the bike. When you buy it. 
However, when you go to file your taxes,   you can basically claim there'll be some 
new form probably to fill out. This says   I bought an electric bike. 
Here's what the value was. We'll get a deduction or a credit when you file 
your taxes. So in other words, if you're getting   a tax refund for the year, then you're going to 
get more of a refund because of the electric bike.   If you are having to pay taxes, then 
you'll get a little bit of that bill   knocked off.

So you don't get 
the advantage of a tax credit   right up front when you buy a bike, but you 
do get the advantage when you file your taxes. So I am interested to see if this 
increases bike sales in December.   If we have people who are trying to reduce 
their taxes and are considering an ebike and   that might push them over the edge 
right before the end of the year. Number two, there is a limit to the maximum amount 
of money you can get back. And that is $1,500,   which is quite a lot. So it's 30% or $1,500. 
Of course I had to do a little bit of math and   figure out what then is the best absolute 
bang for the buck on an electric bike. Now, if you invest in a 24 piece set, I'm going 
to throw in a little gift. So what's the gift? Assuming this tax credit is available. 
So if you were to buy a $5,000 bicycle,   the math comes out to where you would 
be able to get the full $1,500 credit.

You would basically cut the cost of that bike 
after you file your taxes down to $3,500. That   is in my opinion, a steal if that works out. So 
that is the best bang for your buck is a $5,000   ebike. And taking full advantage of 
the tax credit. And number three,   there is an upper limit. As well, basically, 
if you're going to spend this much money,   then maybe you just don't need a tax credit. And that is the upper limit is proposed 
to be $8,000. So if you're going to buy a   stealth bomber, that's $10,000, that's 
not going to apply because it is too much   money. Since I mentioned the stealth 
bike and that'd be over the limit,   there has been some mentioned that it would 
apply to bikes that are 750 Watts or less. That makes perfect sense because   federally, the laws all pertained to 
electric bicycles to say, 750 Watts. Number four. There is a little bit of 
vague wording that says this will apply   for lower income.

pexels photo 3671151

It doesn't say what 
that is or what it means. So there may   be some sort of income cap where 
you cannot take advantage of this. The only downside I see to that 
is personally, I think 90% to 95%   of my customers are either retired or 
semi retired. Are they going to be able   to take advantage of this? Especially, 
If there's an income limit? I don't know,   but we'll have to wait and see what's actually 
in the bill because we don't have that text yet. And finally, number five, what 
does that actually going to do to   the market of electric bikes? There's already 
a shortage.

We already have trouble getting   parts and pieces. So if there is a tax 
incentive to buy, is that going to make   more people buy electric bikes? And I'm 
going to say, Yes, that makes perfect sense. There are a bunch of organizations that 
already support this proposed bill before the   press release came out. So obviously 
there's been a lot of discussion about it   behind the scenes. I did reach out 
to by phone. I tried to call quite   a few of those organizations on the 
list that had phone numbers listed. Unfortunately, none of them picked up, 
so I couldn't get any more details on it. However, I don't think it's a coincidence that 
just a couple of weeks ago, Rad Power took   $150 million in investment money. It just seems 
a little odd to me that a bunch of money was   dumped into a big ebike company.

days before a proposed federal tax credit   is released. Maybe this wasn't the entire 
reason for that, but it probably was a tidbit. Do I think this is going to happen? Yes. Do I have any idea when it's 
going to happen? Absolutely not. If you're going to buy an ebike, I 
would say the same thing. Don’t wait.  I wouldn't wait because demand 
is high. Inventory is low   and it's still going to be challenging over 
the next year or so. And this is only going   to make it more difficult. I've seen a 
few comments from people that are saying,   why are we introducing a 30% tax credit on 
electric bicycles when they primarily come from   China? That doesn't make sense. It's like 
we're subsidizing Chinese manufacturing. There are a lot of different opinions on whether 
this is good or bad overall. The only thing I can   say in regards to that is that we are slowly 
working on and developing more US products. USA! USA All the Way! This is something that has been requested 
a lot by email and in my channel,   it's not available yet.

But many of you can 
probably guess what this is going to be for.   We are ramping up production on this. We 
make this here in house at Bolton Ebikes.   And once we have a supply built up, 
these will be available for sale. So more on that soon, we are finally stocking The 
Handlebar Jack. I did a review on this product   quite some time ago. There is a new updated 
version plan on doing a separate video on this to   give you all of the updates, but this is another 
product that is made in the USA.

And finally,   I brought up one of the WartHog bikes, because 
these are on the water and they're almost here   to the US. If you're still in the market for an 
electric bike, then make sure to go watch my other   video, 10 Things To Know Before Buying An Ebike, 
because all of that information still applies..

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