,i #aahth ,,congress #ast ,session ,h4 ,r4 #afhe ,,in ,,the ,,house ,,of ,,representatives ,march #ba1 #bjbc,mr4 ,panetta 7for himself1 ,mr4 ,blumenauer1 ,mr4 ,thompson of ,california1 and ,mr4 ,schiff7 introduced the following bill2 which was referred to the ,committee on ,ways and ,means ,a ,,bill ,to amend the ,internal ,revenue ,code of #aihf to provide a credit for the purchase of certain new electric bicycles4 #a4 ,short title ,this ,act may be cited as the ,electric ,bicycle ,incentive ,kickstart for the ,environment ,act or as the ,e-,,bike ,act4 #b4 ,credit for certain new electric bicycles 7a7 ,in general ,subpart ,c of part ,,iv of subchapter ,a of chapter #a of the ,internal ,revenue ,code of #aihf is amended by inserting after section #cf;,b the following new section3 #cf;,c4 ,electric bicycles 7a7 ,allowance of credit ,in the case of an individual1 there shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to #cj percent of the cost of each qualified electric bicycle placed in service by the taxpayer during such taxable year4 7b7 ,limitations 7#a7 ,limitation on cost per bicycle taken into account ,the amount taken into account under subsection 7a7 as the cost of any qualified electric bicycle shall not exceed #e1jjj4 7#b7 ,limitation on number of bicycles ,in the case of any taxpayer for any taxable year1 the number of qualified electric bicycles taken into account under subsection 7a7 shall not exceed the excess 7if any7 of-- 7,a7 #a 7#b in the case of a joint return71 reduced by 7,b7 the aggregate number of qualified electric bicycles taken into account by the taxpayer under subsection 7a7 for the #b preceding taxable years4 7#c7 ,phaseout based on income 7,a7 ,phaseout based on modified adjusted gross income ,the credit allowed under subsection 7a7 shall be reduced by #ajj for each #a1jjj 7or fraction thereof7 by which the taxpayer's modified adjusted gross income exceeds-- 7i7 #cjj1jjj in the case of a joint return or a surviving spouse 7as defined in section #b7;a771 7ii7 #bbe1jjj in the case of a head of household 7as defined in section #b7;b771 and 7iii7 #aej1jjj in the case of a taxpayer not described in clause 7i7 or 7ii74 7,b7 ,special rule for modified adjusted gross income taken into account ,the modified adjusted gross income of the taxpayer that is taken into account for purposes of subparagraph 7,a7 shall be the lesser of-- 7i7 the modified adjusted gross income for the taxable year with respect to which the credit is claimed1 or 7ii7 the modified adjusted gross income for the immediately preceding taxable year4 7,c7 ,modified adjusted gross income ,for purposes of subparagraph 7,a71 the term modified adjusted gross income means adjusted gross income increased by any amount excluded from gross income under section #iaa1 #ica1 or #icc4 7c7 ,qualified electric bicycle ,for purposes of this section-- 7#a7 ,in general ,the term qualified electric bicycle means a bicycle or tricycle-- 7,a7 the original use of which commences with the taxpayer1 7,b7 which is acquired for use by the taxpayer and not for resale1 7,c7 which is not property of a character subject to an allowance for depreciation or amortization in the hands of the taxpayer1 7,d7 which is made by a qualified manufacturer and is labeled with the qualified vehicle identification number assigned to such bicycle or tricycle by such manufacturer1 7,e7 with respect to which the aggregate amount paid for such acquisition does not exceed #h1jjj1 7,f7 which is a class #a electric bicycle or tricycle1 a class #b electric bicycle or tricycle1 or a class #c electric bicycle or tricycle1 7,g7 which is equipped with-- 7i7 fully operable pedals1 7ii7 a saddle or seat for the rider1 and 7iii7 an electric motor of less than #gej watts which is designed to provide assistance in propelling the bicycle or tricycle and-- 7,i7 does not provide such assistance if the bicycle or tricycle is moving in excess of #bj miler per hour1 or 7,,ii7 if such motor only provides such assistance when the rider is pedaling1 does not provide such assistance if the bicycle or tricycle is moving in excess of #bh miles per hour1 7,h7 which is not equipped with any motor other than the motor described in subparagraph 7,g77iii71 7,i7 which is not capable of exceeding the speed limitation in paragraph 7#b7 by means of any electronic switch1 setting or software modification provided or made available by the manufacturer1 and 7,j7 which has a drive system that has been certified by an accredited laboratory to ,underwriters ,laboratory 7,,ul7 standard ,,ul #bhdi1 or a battery that has been certified to any of the battery safety standards listed in such standard ,,ul #bhdi or such other drive system or battery safety standard as may be recognized by the ,united ,states ,consumer ,product ,safety ,commission4 7#b7 ,class #a electric bicycle or tricycle ,the term class #a electric bicycle or tricycle means a two- or three-wheeled vehicle equipped with an electric motor that provides assistance only when the rider is pedaling1 that is not capable of providing assistance when the speed of the vehicle exceeds #bj miles per hour1 and that is not a class #c electric bicycle or tricycle4 7#c7 ,class #b electric bicycle or tricycle ,the term class #b electric bicycle or tricycle 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 assistance1 and that is not capable of providing assistance when the speed of the vehicle exceeds #bj miles per hour4 7#d7 ,class #c electric bicycle or tricycle ,the term class #c electric bicycle or tricycle means a two- or three-wheeled vehicle equipped with an electric motor that provides assistance only when the rider is pedaling1 and that is not capable of providing assistance when the speed of the vehicle exceeds #bh miles per hour4 7d7 ,special rule for bicycles used by an individual in a trade or business ,in the case of any bicycle or tricycle with respect to which the taxpayer elects 7at such time and in such manner as the ,secretary may provide7 the application of this subsection-- 7#a7 subsections 7c77#a77;,c7 and 7f77#b7 shall not apply with respect to such bicycle or tricycle1 and 7#b7 no deduction 7including any deduction for depreciation or amortization7 or credit 7other than the credit allowed under this section7 shall be allowed for the cost of such bicycle or tricycle4 7e7 ,,vin number requirement 7#a7 ,in general ,no credit shall be allowed under subsection 7a7 with respect to any qualified electric bicycle unless the taxpayer includes the qualified vehicle identification number of such bicycle on the return of tax for the taxable year4 7#b7 ,qualified vehicle identification number ,for purposes of this section1 the term qualified vehicle identification number means1 with respect to any qualified electric bicycle1 the vehicle identification number assigned to such bicycle by a qualified manufacturer pursuant to the methodology referred to in paragraph 7#c77;,a74 7#c7 ,qualified manufacturer ,for purposes of this section1 the term qualified manufacturer means any manufacturer of qualified electric bicycles which enters into an agreement with the ,secretary which provides that such manufacturer will-- 7,a7 assign a vehicle identification number to each qualified electric bicycle produced by such manufacturer utilizing a methodology that will ensure that such number 7including any alphanumeric7 is unique to such bicycle 7by utilizing numbers or letters which are unique to such manufacturer or by such other method as the ,secretary may provide71 7,b7 label such bicycle with such number in such manner as the ,secretary may provide1 and 7,c7 make periodic written reports to the ,secretary 7at such times and in such manner as the ,secretary may provide7 of the vehicle identification numbers so assigned and including such information as the ,secretary may require with respect to the qualified electric bicycle to which such number was so assigned4 7f7 ,special rules 7#a7 ,basis reduction ,for purposes of this subtitle1 the basis of any property for which a credit is allowable under subsection 7a7 shall be reduced by the amount of such credit so allowed4 7#b7 ,no double benefit ,the amount of any deduction or other credit allowable under this chapter for a qualified electric bicycle for which a credit is allowable under subsection 7a7 shall be reduced by the amount of credit allowed under such subsection for such bicycle4 7#c7 ,property used outside united states not qualified ,no credit shall be allowable under subsection 7a7 with respect to any property referred to in section #ej7;b77#a74 7#d7 ,recapture ,the ,secretary shall1 by regulations or other guidance1 provide for recapturing the benefit of any credit allowable under subsection 7a7 with respect to any property which ceases to be property eligible for such credit4 7#e7 ,election not to take credit ,no credit shall be allowed under subsection 7a7 for any qualified electric bicycle if the taxpayer elects to not have this section apply to such bicycle4 7g7 ,treatment of certain possessions 7#a7 ,payments to possessions with mirror code tax systems ,the ,secretary shall pay to each possession of the ,united ,states which has a mirror code tax system amounts equal to the loss 7if any7 to that possession by reason of the application of the provisions of this section 7determined without regard to this subsection74 ,such amounts shall be determined by the ,secretary based on information provided by the government of the respective possession4 7#b7 ,payments to other possessions ,the ,secretary shall pay to each possession of the ,united ,states which does not have a mirror code tax system amounts estimated by the ,secretary as being equal to the aggregate benefits 7if any7 that would have been provided to residents of such possession by reason of the provisions of this section if a mirror code tax system had been in effect in such possession4 ,the preceding sentence shall not apply unless the respective possession has a plan which has been approved by the ,secretary under which such possession will promptly distribute such payments to its residents4 7#c7 ,mirror code tax system2 treatment of payments ,rules similar to the rules of paragraphs 7#c71 7#d71 and 7#e7 of section #ba7;h7 shall apply for purposes of this section4 7h7 ,transfer of credit 7#a7 ,in general ,subject to such regulations or other guidance as the ,secretary determines necessary or appropriate1 if the taxpayer who acquires a qualified electric bicycle is an individual and elects the application of this subsection with respect to such qualified electric bicycle1 the credit which would 7but for this subsection7 be allowed to such taxpayer with respect to such qualified electric bicycle shall be allowed to the eligible entity specified in such election 7and not to such taxpayer74 7#b7 ,eligible entity ,for purposes of this paragraph1 the term eligible entity means1 with respect to the qualified electric bicycle for which the credit is allowed under subsection 7a71 the retailer which sold such qualified electric bicycle to the taxpayer and has-- 7,a7 subject to paragraph 7#d71 registered with the ,secretary for purposes of this paragraph1 at such time1 and in such form and manner1 as the ,secretary may prescribe1 7,b7 prior to the election described in paragraph 7#a7 and no later than at the time of such sale1 disclosed to the taxpayer purchasing such qualified electric bicycle-- 7i7 the retail price1 7ii7 the value of the credit allowed or other incentive available for the purchase of such qualified electric bicycle1 7iii7 all fees associated with the purchase of such qualified electric bicycle1 and 7iv7 the amount provided by the retailer to such taxpayer as a condition of the election described in paragraph 7#a71 7,c7 made payment to such taxpayer 7whether in cash or in the form of a partial payment or down payment for the purchase of such qualified electric bicycle7 in an amount equal to the credit otherwise allowable to such taxpayer1 and 7,d7 with respect to any incentive otherwise available for the purchase of a qualified electric bicycle for which a credit is allowed under this section1 including any incentive in the form of a rebate or discount provided by the retailer or manufacturer1 ensured that-- 7i7 the availability or use of such incentive shall not limit the ability of a taxpayer to make an election described in paragraph 7#a71 and 7ii7 such election shall not limit the value or use of such incentive4 7#c7 ,timing ,an election described in paragraph 7#a7 shall be made by the taxpayer not later than the date on which the qualified electric bicycle for which the credit is allowed under subsection 7a7 is purchased4 7#d7 ,revocation of registration ,upon determination by the ,secretary that a retailer has failed to comply with the requirements described in paragraph 7#b71 the ,secretary may revoke the registration 7as described in subparagraph 7,a7 of such paragraph7 of such retailer4 7#e7 ,tax treatment of payments ,with respect to any payment described in paragraph 7#b77;,c71 such payment-- 7,a7 shall not be includible in the gross income of the taxpayer1 and 7,b7 with respect to the retailer1 shall not be deductible under this title4 7#f7 ,application of certain other requirements ,in the case of any election under paragraph 7#a7 with respect to any qualified electric bicycle-- 7,a7 the amount of the reduction under subsection 7b7 shall be determined with respect to the modified adjusted gross income of the taxpayer for the taxable year preceding the taxable year in which such qualified electric bicycle was acquired 7and not with respect to such income for the taxable year in which such qualified electric bicycle was acquired71 7,b7 the requirements of paragraphs 7#a7 and 7#b7 of subsection 7f7 shall apply to the taxpayer who acquired the qualified electric bicycle in the same manner as if the credit determined under this section with respect to such qualified electric bicycle were allowed to such taxpayer1 and 7,c7 subsection 7f77#e7 shall not apply4 7#g7 ,advance payment to registered retailers 7,a7 ,in general ,the ,secretary shall establish a program to make advance payments to any eligible entity in an amount equal to the cumulative amount of the credits allowed under subsection 7a7 with respect to any qualified electric bicycles sold by such entity for which an election described in paragraph 7#a7 has been made4 7,b7 ,excessive payments ,rules similar to the rules of section #fdag7;c77#f7 shall apply for purposes of this paragraph4 7#h7 ,retailer ,for purposes of this subsection1 the term retailer means a person engaged in the trade or business of selling qualified electric bicycles in a ,state1 the ,district of ,columbia1 the ,commonwealth of ,puerto ,rico1 or any other territory or possession of the ,united ,states4 4 7b7 ,conforming amendments 7#a7 ,section #ajaf7;a7 of the ,internal ,revenue ,code of #aihf is amended by striking and at the end of paragraph 7#cg71 by striking the period at the end of paragraph 7#ch7 and inserting 1 and1 and by adding at the end the following new paragraph3 7#ci7 to the extent provided in section #cf;,c7f77#a74 4 7#b7 ,section #fbaa7;b77#d77;,a7 of such ,code is amended by inserting #cf;,c1 after #cf;,b14 7#c7 ,section #fbac7;g77#b7 of such ,code is amended-- 7,a7 in subparagraph 7,u71 by striking and at the end1 7,b7 in subparagraph 7,v71 by striking the period at the end and inserting 1 and1 and 7,c7 by adding at the end the following3 7,w7 an omission of a correct vehicle identification number required under section #cf;,c7e7 7relating to electric bicycles credit7 to be included on a return4 4 7#d7 ,section #feja7m7 of such ,code is amended by inserting #cf;,c7f77#e71 after #ce7;g77#aa714 7#e7 ,section #acbd7;b77#b7 of title #ca1 ,united ,states ,code1 is amended by inserting #cf;,c1 after #cf;,b14 7c7 ,clerical amendment ,the table of sections for subpart ,c of part ,,iv of subchapter ,a of chapter #a of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new item3 ,sec4 #cf;,c4 ,electric bicycles4 4 7d7 ,effective date ,the amendments made by this section shall apply to property placed in service after the date of the enactment of this ,act1 in taxable years ending after such date4 7e7 ,treasury report ,not later than #c years after the date of the enactment of this ,act1 the ,secretary of the ,treasury 7or the ,secretary's delegate7 shall make publicly available a written report specifying the number of taxpayers claiming the credit allowed under section #cf;,c of the ,internal ,revenue ,code of #aihf 7as added by this section7 and the aggregate dollar amount of such credits so allowed4 ,such information shall be stated separately for taxable years beginning in #bjbc and #bjbd1 and shall be stated separately with respect to each such years with respect to taxpayers in each of the income brackets to which section #a of such ,code applies4