The Faux 2021 Bicycle-Tax Plan (or Red tape is the new bar tape)

The Faux 2021 Bicycle-Tax Plan - Outside Online Outside

Alas, understanding the implications of the new bicycle-tax policy requires an intimate understanding of cycling culture, which is why you won’t find an analysis in mainstream financial-media outlets such as The Wall Street Journal and MSNBC—to be fair, you also won’t find it there because what you’re currently reading is satire and completely made up.

Conversely, while we outdoorsy types know bikes, we aren’t so great with money, so what follows is a bicycle-tax-policy primer—though should the bill pass the House, you’d be well-advised to consult your tax preparer and/or local bike shop before filing your next return.

E-Bikes
Electric vehicles are generally more expensive than their fossil-fuel-burning counterparts, and the federal government has allowed consumers to take advantage of EV tax credits designed to make these cleaner vehicles more attainable. Meanwhile, cycling advocates have long argued that tax credits should also be available for e-bikes, which can easily exceed the price of a used Hyundai. This is important, since Americans tend to balk at any form of transportation that costs as much as a car, unless it’s a boat or a Harley-Davidson.

However, while some e-bikes do serve as automobile alternatives, others are purely recreational in nature and not likely to replace car trips in a meaningful way, and so the new e-bike tax credit would apply thusly:

E-assist commuter bikes: Up to $500

E-assist cargo bikes: Up to $750

Those cheap electric fat bikes on Amazon: Up to $50, or $75 with a 30-day free trial of Amazon Prime

E-assist road/mountain bikes: Nondeductible (unless you use one for work, like Fabian Cancellara*)

Traditional Bikes
That’s not fair! you may be thinking. My regular bike also replaces car trips, plus it doesn’t require all that lithium mining. So where’s my tax credit? Well, good news, retro grouches! You, too, could qualify for a tax credit, though you’d have to complete the following worksheet to find out for sure.

1. Enter total number of qualifying bicycles:
2. Enter number of bicycles with a handlebar drop greater than zero:
3. Enter number of bicycles with full fenders:
4. Enter number of bicycles with racks, panniers, bags, or baskets:
5. Enter number of bicycles with mismatched tires, wheels, or group sets:
6. Add lines 3, 4, and 5.
7. Subtract line 2 from line 6.
8. Subtract line 7 from line 1.

Is the amount on line eight greater than the amount on line one?

Yes: Congratulations! Multiply line eight by $500 to find the amount of your tax credit.

No: Stop! You cannot take the credit, as you may be a roadie, mountain biker, triathlete, or other form of self-indulgent weenie.

Note: Bicycles with carbon-fiber frames, front and rear suspension, or wheels with fewer than 32 spokes do not qualify for the credit and should not be listed on line one. If you ride a tall bike, recumbent bike, unicycle, or penny-farthing, please see IRS Publication 665: Tax Credit for Uncommon Velocipedes, and complete Form 1080-BENT.

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