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This is sorta a cross post from the ebike forum: Custom Builders Left Out of eBike Tax Credit
I've been following the development of the Build Back Better ebike tax credit, and it looks like it will settle in at $900 refund for any individual filer under $75,000 and $1800 total (or $900 per bike) for joint filers under $150,000.
What I have not seen however, is how the IRS plans to track the actual purchase of an ebike. Will the IRS be looking for certain receipt clues that mention "ebike?"
For example, lets say I find a custom frame builder to weld me up an ebike frame (with mid drive mount), but I'll need to purchase the motor and battery separately. Maybe the custom builder sources the battery and motor on my behalf, great. Will the builder need to provide a receipt claiming the bike is an ebike?
What about adding ebike conversion parts? I actually end up with a far more carbon friendly product - I reuse my existing frame - and merely add a mid-drive Bafang and battery to it. For $900, you could get all the conversion parts pretty much for free. I wonder how the tax credit will view these types of things?
Some concerns:
- Tax credit is after the fact - meaning you've gotta have the money in the bank in order to buy the ebike up front and then wait till the following year for the refund, which lots of people don't have and cant afford.
- eBikes are predominantly produced overseas, where we're encountering delays and shortages due to supply chain issues.
- Only helps local retailers (bike shops) who carry ebikes, but I've read no mention of the idea that you can't buy an ebike direct from overseas and use the tax credit.
- Does not appear to be well suited for ebike conversion, or domestically produced small-batch custom frames with ebike components installed.
I've been following the development of the Build Back Better ebike tax credit, and it looks like it will settle in at $900 refund for any individual filer under $75,000 and $1800 total (or $900 per bike) for joint filers under $150,000.
What I have not seen however, is how the IRS plans to track the actual purchase of an ebike. Will the IRS be looking for certain receipt clues that mention "ebike?"
For example, lets say I find a custom frame builder to weld me up an ebike frame (with mid drive mount), but I'll need to purchase the motor and battery separately. Maybe the custom builder sources the battery and motor on my behalf, great. Will the builder need to provide a receipt claiming the bike is an ebike?
What about adding ebike conversion parts? I actually end up with a far more carbon friendly product - I reuse my existing frame - and merely add a mid-drive Bafang and battery to it. For $900, you could get all the conversion parts pretty much for free. I wonder how the tax credit will view these types of things?
Some concerns:
- Tax credit is after the fact - meaning you've gotta have the money in the bank in order to buy the ebike up front and then wait till the following year for the refund, which lots of people don't have and cant afford.
- eBikes are predominantly produced overseas, where we're encountering delays and shortages due to supply chain issues.
- Only helps local retailers (bike shops) who carry ebikes, but I've read no mention of the idea that you can't buy an ebike direct from overseas and use the tax credit.
- Does not appear to be well suited for ebike conversion, or domestically produced small-batch custom frames with ebike components installed.
