SB435: Tax credit for electric assist bicycle

Additional Related Questions and References

    What do e-bikes look like?

• è E-bikes can range in style from road bikes to mountain bikes to step-through hybrids, to longtail cargo bikes, to front-loading cargo bikes. Here are a few examples. The Trek Allant+ (Figures 1 and 2) has the same style as a typical city bike. It comes with both Class 1 and Class 3 options. The Yuba Spicy Curry (Figure 3) is an example of a Class 1 Long-tail. The Riese and Muller Load (Figure 4) is a front-loading style, and also comes in both Class 1 and Class 3 variants.
• è Step-through Hybrid e-bikes start at about $1200, while child-carrying cargo bikes range from $5000 to $10000 depending on battery range, class of motor, and weatherproof accessories.

Why promote e-bikes?

1. è Research published Sept 2020 conclude a large positive impact e-bikes have on a person’s transportation.
   • Those who bought e-bikes increased bicycle use from 2.1km (1.3 miles) to 9.2km (5.7 miles) on average/day; a 340% increase.
   • The e-bike's share of all their transportation increased dramatically too; from 17% to 49%. E-bikes are replacing many car trips.
   • References: the research paper, and an editorial on the research.
2. è According to the National Household Travel Survey, more than 45% of vehicle trips in the US are 3 miles or less, a distance that many people are willing to bike. And about 60% of trips are 5 miles or less – a distance that e-bikes make much more feasible and convenient.
   • We aren’t aiming to get rid of cars or replace all car trips, but so many trips are short trips.
   • Even 1 out of 10 car trips are replaced because of an e-bike purchase, that’s a lot of Oklahomans integrating physical activity into their daily lives, while reducing impact to wear and tear on our roads, as well as reducing impact to our air quality.
3. è Health impacts of active transportation, during an epidemic of inactivity
   • 50% of Americans fall short of recommended weekly activity levels.
   • Integrating physical activity into daily lives make it routine and habit-forming, rather than having to carve out time of our busy schedules (and getting up motivation while depressed during a pandemic), makes activity much more successful.
4. è Cost of healthcare from diabetes and obesity
   • to our healthcare system, to managed care facilities, to family members having to care for the elderly
   • Physical activity now is about being able to make it to the bathroom by yourself, on time, when you’re older.
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   What are other states doing?

è A survey of programs from 2019 showed a range of rebate and tax incentive programs. These also range from a percentage of cost up to a cap, or a flat amount. California offers 50% of the cost up to $1000 total. Vermont offers a flat $200. Both are rebate programs with a capped total pot for the program. Figure 5 summarizes the programs surveyed across countries, states, and municipalities (from Michael McQueen, How E-Bike Incentive Programs are Used to Expand the Market; Transportation Research and Education Center Portland State University, 2019).

Figure 5 Summary of 2019 Incentive programs for purchasing bikes and e-bikes

 Why go with a Flat Tax Credit vs Rebate or other mechanism?

• è This is a balance between money and benefit up front for the buyer, versus money available from the state. A tax credit does not require money up front, or a significant amount of administrative overhead for managing the program. An implementation may just involve documented receipts from the tax payer and/or sales reports from participating bike shops.
• è A flat dollar amount allows for easier messaging, and easier calculations. Simultaneously, it doesn’t incentivize the buyer from buying more than they really need.

   

• è Fewer powerful and heavy vehicles on the road (cars, personal SUVs and trucks) could reduce death rates. Motor vehicle Traffic incidents are the top or 2^nd-most cause of unintentional deaths across all age groups in Oklahoma (CDC data). Imagine if fewer cars were involved in trips to neighborhood parks, or schools, or daycares.