Recently, the United States government has made a bold move in promoting eco-friendly transportation. A groundbreaking bill was passed last Friday, offering up to $1500 in subsidies for citizens purchasing electric bicycles. This initiative marks a significant shift in the nation's approach to sustainable travel, aiming to reduce carbon emissions and encourage healthier lifestyles.

The subsidy beneficiaries of this bill also include buyers of electric motorcycles (two-wheelers and three-wheelers). The bill proposes to provide taxpayers who purchase electric motorcycles with a refundable tax credit equivalent to 30% of the purchase price of the new vehicle. For electric bicycles, the maximum discount is $1,500, while for electric motorcycles, the maximum discount is $7,500. This 30% subsidy is a first-time benefit for electric bicycles, while the previous discount for electric motorcycles was 10%.

Criteria for eligible electric motorcycles for the subsidy: The battery capacity should not be less than 2.5 kWh, and the speed should not be lower than 72 km/h.

The bill will also provide pre-tax commuting subsidies for individuals who commute to work on electric bicycles or shared bicycles. According to the proposal, the amount of the electric bicycle commuting subsidy will be 30% of the parking subsidy, which is equivalent to $81 per month or approximately $1,000 per year.

The eligibility criteria for the electric bicycle subsidy are as follows: electric bicycles with a purchase price lower than $8,000.

We know that the majority of electric bicycles in the US market are sourced from China. If this policy is implemented, it will undoubtedly be a significant boost for Chinese manufacturers. According to Yin Xinci, an analyst at CITIC Securities, since the electric two-wheelers available in the US are mainly e-bikes with prices ranging from $1,000 to $8,000, the smooth implementation of the new budget agreement will significantly reduce the cost for consumers, further promoting the overall development of the micro-electric vehicle industry. As the US lacks a mature micro-electric vehicle industry chain and heavily relies on imports, it is expected that this bill will directly drive the performance improvement of domestic related enterprises.

"The latest vote in the House of Representatives on the 'Build Back Better (BBB) Act' is part of a climate solution due to new financial incentives for bicycles and electric bicycles, as well as funding for improving climate-related infrastructure. We are urging the Senate to adopt the BBB Act by the end of the year so that we can benefit everyone, regardless of how they travel or where they live. We can make efforts to reduce carbon emissions."

According to The Verge, the agreement is currently in the final stages before approval, and there is a strong possibility that the policy will be implemented. In the coming weeks, the Senate may revise the agreement. Chuck Schumer, the Majority Leader of the Senate, stated that his goal is to have the Senate pass the bill before Christmas, which means that this $1.75 trillion spending plan could potentially be implemented as early as January next year.