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.
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
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..