Should We Embrace the Domestic Bicycle Production Act?

The Home Bicycle Manufacturing Act seeks to flatten the funding obligatory for producers to supply bikes and e-bikes on U.S. soil.

Three components compose the invoice. The primary half would droop tariffs on parts for 10 years. By decreasing the price to import parts like brakes, handlebars, derailleurs and wheels, it ought to encourage home bicycle meeting. The second half creates a home, transferrable e-bike manufacturing tax credit score, which might create a monetary incentive for corporations to supply e-bikes domestically. The third half would create what’s being known as the U.S. Bicycle and E-Bicycle Manufacturing Initiative which might make low-interest, 12-year loans for corporations to arrange or increase manufacturing within the U.S. by shopping for capital tools.

The primary half, which might droop tariffs, doesn’t seem to be a lot on paper, however it’s an enormous deal as a set of tariffs that had been suspended in the course of the pandemic at the moment are going to hit imported bikes and e-bikes starting in July. A number of the merchandise that had been a part of the Part 301 exclusion carry a 25 p.c tariff.

The second half, as a result of it focuses solely on e-bikes, will create an actual incentive for producers to start home manufacturing of motors and batteries. The home manufacturing of parts reminiscent of brakes and drivetrains nonetheless appears a stretch.

The third half, which affords low-interest loans over a 12-year time period, would make buying the types of instruments obligatory to supply bikes and e-bikes inside the realm of many small companies that battle to increase on account of an absence of capital or enough credit score.