# Custom Builders Left Out of eBike Tax Credit



## PHeller (Dec 28, 2012)

It’s looking like this $900 tax credit for ebikes under $4000 is going to be a huge boom for the industry, but I can’t help but wonder about how little this might help our domestic manufacturing.

Most ebikes are produced entirely overseas, and supply chain issues have really impacted meeting demand across the world.

furthermore, from a carbon footprint standpoint, it’d be better if that credit could be used for eBike kits as well. It’d keep less old bikes out of the landfill.

Where I’m specifically interested is in USA based custom frame builders. Granted there are many out there who have no interest in building an eBike, but there are plenty who might. Will their products be eligible for these tax credits?


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## Jack7782 (Jan 1, 2009)

PHeller said:


> It’s looking like this $900 tax credit for ebikes under $4000 is going to be a huge boom for the industry, but I can’t help but wonder about how little this might help our domestic manufacturing.
> 
> Most ebikes are produced entirely overseas, and supply chain issues have really impacted meeting demand across the world.
> 
> ...


I think the goal is to reduce the use of cars, not enthusiast bikes, especially MTBs that are for leisure activities. Think how festive this year's Christmas party will be at Aventon in SoCal and Rad in Seattle


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## PHeller (Dec 28, 2012)

Plenty of custom builders can make city bikes and utility bikes.

It's a shame that Aventon and Rad will be celebrating while sending the vast majority of their proceeds overseas, and then undoubtedly waiting for months for their products to arrive on carbon intensive container ships. I hope they pay their warehouse and customer service people good wages to live in the high COL areas for which they are located.

Very often, these types of "consumer incentive" tax credits end up growing just a few businesses substantially, making the owners of those businesses wealthy, but doing no real improvements for the larger economy.

EDIT/UPDATE: Just found a news article saying that Rad bikes is actually investing $145 million into "North American Production" - but didn't say what that production would be. It could be assembly, logistics, etc. I hope they are producing frames, but I won't hold my breath.


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