Electric Bicycle Incentive Kickstart for the Environment Act

“36C. Electric bicycles

“(a) Allowance of credit—In the case of an individual, there shall be allowed as a credit against the tax imposed by this subtitle for any taxable year an amount equal to 30 percent of the cost of any qualified electric bicycle placed in service by the taxpayer during such taxable year.

“(b) Limitation

“(1) Dollar limitation—In the case of any taxpayer for any taxable year, the credit allowed under subsection (a) shall not exceed the excess (if any) of—

“(A) $1,500 (twice such amount in the case of a joint return), reduced by

“(B) the aggregate credits allowed to the taxpayer under subsection (a) for the 2 preceding taxable years.

“(2) Number of bicycles—In the case of any taxpayer for any taxable year, the number of bicycles taken into account under subsection (a) shall not exceed the excess (if any) of—

“(A) 1 (2 in the case of a joint return), reduced by

“(B) the aggregate number of bicycles taken into account by the taxpayer under subsection (a) for the 2 preceding taxable years.

“(c) Qualified electric bicycle—For purposes of this section—

“(1) In general—The term “qualified electric bicycle” means a two- or three-wheeled vehicle—

“(A) which is a class 1 electric bicycle, a class 2 electric bicycle, or a class 3 electric bicycle,

“(B) which is equipped with—

“(i) pedals capable of propelling such vehicle,

“(ii) a saddle or seat for the rider, and

“(iii) an electric motor of less than 750 watts which is capable of propelling such vehicle,

“(C) the original use of which commences with the taxpayer,

“(D) which is acquired for use by the taxpayer in the United States and not for lease or resale, and

“(E) which is not property of a character subject to an allowance for depreciation or amortization in the hands of the taxpayer.

“(2) Limitation based on acquisition cost—The term “qualified electric bicycle” shall not include any vehicle if the aggregate amount paid for the acquisition of such vehicle exceeds $8,000.

“(3) Class 1 electric bicycle—The term “class 1 electric bicycle” means a two- or three-wheeled vehicle equipped with an electric motor that provides assistance only when the rider is pedaling, that is not capable of providing assistance when the speed of the vehicle exceeds 20 miles per hour, and that is not a class 3 electric bicycle.

“(4) Class 2 electric bicycle—The term “class 2 electric bicycle” means a two- or three-wheeled vehicle equipped with an electric motor that may be used to propel the vehicle without the need of any additional assistance, and that is not capable of providing assistance when the speed of the vehicle exceeds 20 miles per hour.

“(5) Class 3 electric bicycle—The term “class 3 electric bicycle” means a two- or three-wheeled vehicle equipped with an electric motor that provides assistance only when the rider is pedaling, and that is not capable of providing assistance when the speed of the vehicle exceeds 28 miles per hour.”