Should We Embrace the Domestic Bicycle Production Act?

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The invoice seeks to create a set of economic incentives to encourage manufacturers to start or increase manufacturing on U.S. soil.

Should We Embrace the Domestic Bicycle Production Act?

A brand new invoice seeks to foster development in home manufacturing of e-bikes. Earl Blumenauer, democratic consultant from Oregon has launched laws meant to encourage manufacturing and meeting of each bikes and e-bikes. Blumenauer is founder and co-chair of the Congressional Bike Caucus and is without doubt one of the most vocal supporters of biking in Congress.

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.

As anybody who has ever adopted a bit of laws is aware of, there’s a massive distinction between introducing a invoice and seeing a regulation handed. Many are shot down and by no means make it out of committee. Some obtain important rewriting and/or see different kinds of unrelated laws tacked on that may assist to scuttle a invoice.

One other problem this invoice faces is that Blumenauer introduced that he won’t search reelection this yr. With out him round to shepherd the invoice by means of Congress earlier than handing it off to the Senate, it could battle to advance, except he can get it to President Biden’s desk earlier than November.

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