The United States passed a bill last Friday that will give citizens up to $1,500 in subsidies to buy electric bicycles
On the morning of November 19, the U.S. House of Representatives passed President Biden's "Build Back Better Act". A highlight of the bill is the high subsidies for the electric vehicle industry:
In the field of electric vehicles, in order to stimulate consumer demand, the bill proposes to increase the tax deduction per vehicle from the original $7,500 to $12,500.
However, not all EV manufacturers are eligible for this policy. All electric vehicles sold in the U.S. will still receive a $7,500 tax deduction, while an electric car built by UAW workers can receive an additional $4,500 tax deduction if the car’s battery is also made in the U.S. You can get an additional $500 in tax deductions. The measure will get stricter, with only electric vehicles built in the U.S. expected to qualify for the $12,500 tax credit after 2027.
The subsidy object of the bill also includes buyers of two- and three-wheeled electric vehicles (electric motorcycles): the bill intends to provide citizens who buy electric two-wheeled vehicles with a refundable tax credit equivalent to 30% of the price of the body, of which , the discount is capped at $1,500 for electric bikes and $7,500 for electric motorcycles. The 30% subsidy is the first time for electric bicycles, while the proportion of electric motorcycles that can be reduced by only 10% before.
Eligibility for subsidized electric motorcycles: battery not lower than 2.5kw/h, speed not lower than 72km/h
The bill would also provide a pre-tax commuter allowance for those who commute on electric bikes or shared bikes. According to the proposal, the amount of the electric bike commuter allowance would be 30% of the parking allowance, equivalent to $81 a month, or about $1,000 a year.
Eligibility for the e-bike subsidy: e-bikes priced below $8,000.
We know that most of the electric bicycles in the U.S. market come from China. The passage of this policy will undoubtedly be a major benefit for Chinese manufacturers. Yin Xinchi, an analyst at CITIC Securities, said that since the electric two-wheelers sold in the United States are mainly electric bicycles, and most of them are priced between 1,000-8,000 US dollars, if the new bill is successfully implemented, it will greatly reduce the purchase cost of consumers and further promote The overall development of the mini electric vehicle industry. However, the United States lacks a mature micro-electric vehicle industry chain and is highly dependent on imports. It is expected that the bill will directly drive the performance of local related companies to improve.
Analysts also said that due to the impact of the epidemic, the industry has been facing the problem of insufficient production capacity, but the current upstream production capacity recovery signal is obvious. Due to the strong demand side and low inventory, as the upstream production capacity problem of the industry is solved and the profit quality is restored, it is expected that demand will be the highest in 2022. A year of cash and profitability.
PeopleForBikes President and CEO Jenn Dice explained:
“Thanks to new financial incentives for bicycles and e-bikes and money to improve climate-friendly infrastructure, the House’s latest vote on the Building Back for a Better Future (BBB) Act is part of a climate solution. We ask the Senate by year’s end By implementing the BBB early, everyone can benefit from it, reducing carbon emissions in mobile commuting.”
The Verge reported that the bill may have reached the final process before approval, and the policy is more likely to be implemented. It could be revised by the Senate in the coming weeks. Senate Leader Chuck Schumer said his goal was to get the Senate to pass the bill by Christmas, meaning the $1.75 trillion package could be implemented as early as January.
In the field of electric vehicles, in order to stimulate consumer demand, the bill proposes to increase the tax deduction per vehicle from the original $7,500 to $12,500.
Eligibility for subsidized electric motorcycles: battery not lower than 2.5kw/h, speed not lower than 72km/h
We know that most of the electric bicycles in the U.S. market come from China. The passage of this policy will undoubtedly be a major benefit for Chinese manufacturers. Yin Xinchi, an analyst at CITIC Securities, said that since the electric two-wheelers sold in the United States are mainly electric bicycles, and most of them are priced between 1,000-8,000 US dollars, if the new bill is successfully implemented, it will greatly reduce the purchase cost of consumers and further promote The overall development of the mini electric vehicle industry. However, the United States lacks a mature micro-electric vehicle industry chain and is highly dependent on imports. It is expected that the bill will directly drive the performance of local related companies to improve.
“Thanks to new financial incentives for bicycles and e-bikes and money to improve climate-friendly infrastructure, the House’s latest vote on the Building Back for a Better Future (BBB) Act is part of a climate solution. We ask the Senate by year’s end By implementing the BBB early, everyone can benefit from it, reducing carbon emissions in mobile commuting.”