This is not a well thought out and polished article, without clever wordplay and perfect pictures to get the point across. I just heard about it, I’ll post it as soon as possible.
Tax credits are better than tax deductions. The deduction means that, assuming you earn $40,000 a year, you can calculate all allowable deductions from your taxable income after you add up all your earnings.
The tax credit is “up to” $1500, so assume your income bracket requires you to pay 15% income tax. If the income is $40,000, the tax owed is $6,000. If you can lower your taxable income, you’ll pay less overall in taxes. If you qualify for the full $1,500 deduction, your taxes will be calculated on $38,500 instead of $40,000.
At a 15% rate, this would save you $225 in effective taxes. Therefore, you would owe $5,850 instead of $6,000.
Tax Credit Meaning (in this case), you can deduct the full $1,500 of the $6,000 you owe in taxes, which means…you will now owe $4,500 instead of $6,000 (hopefully you The payroll tax withheld matches what you owe, so you “break even” when you pay your taxes).
As mentioned, you may get a credit of “up to” $1,500 to cover 30% of the cost of an e-bike. That means you can buy an e-bike that costs $5,000 or more to get the full $1,500 credit.
Of course, the more realistic and common $3,000 e-bike price might mean a $900 tax credit…and a $2,000 e-bike might get you a 30% tax credit on $600.
This is just a tax proposal at this stage, and we can all help make it happen.
This tax credit doesn’t exist yet, but if you’ve read this far, it could be a huge boost to e-bikes across the country, even if you already own one.
warn! I’m not a tax lawyer, nor do I play a tax lawyer on TV.
“…The Electric Bicycle Environmental Incentive Startup (E-BIKE) Act will reduce the cost for consumers of purchasing a new electric bicycle by 30 percent (up to $1,500).
E-bikes have the potential to replace car travel and allow people to get around efficiently and easily, regardless of their age or physical condition. A comprehensive approach to reducing carbon emissions to combat climate change must recognize that e-bikes can take cars off the road and keep people mobile, active and connected to their communities.
Use this page to encourage your representatives to co-sponsor the bill. If your representative has already co-sponsored the bill, we will send a thank you note! …“
By Ron/spinningmagnets, February 2021