While it isnt a direct replacement for a car, more people should consider purchasing an e-bike rather than another EV.
Velosurance is a national insurance agency founded by two cyclists in response to the insurance needs of bicycle riders nationwide. We partnered with an A.M.Best “A” rated, US insurance company to provide a multi-risk policy offering protection to all types of cyclists.
E-bike tax credits and rebates in the USA
More states are offering e-bike incentives, see if you qualify here.
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Click/hover on your state to find out more about its rebates. Green states offer state-wide or regional rebates, while gray states do not offer rebates at the moment
Your State-by-state Guide to US Electric Bike Rebates & Tax Credits
The surge in e-bike popularity in the United States can hardly be disputed, their sales have significantly outpaced sales of regular bicycles in recent years. Their rise in popularity isn’t surprising: even compared to electric cars, they are significantly better for the environment, they take up a fraction of space and are easy to park and store, cheap and easy to repair and, if you live in a congested urban environment, they’ll get you to your destination faster than a car. Due to all these factors, e-bikes have leaped from being a strictly niche product to a product enjoyed by people of all ages.
A number of states are setting up e-bike rebate programs that offer their residents discounts for purchasing e-bikes. While some programs are just getting set up, others are already up and running. On the state level, these programs often fall under varying jurisdictions so knowing where to look is critical. Qualifications for different state-level programs also vary, for example, low-income individuals often get a bigger rebate. On average, these tax rebates offer around 20-30% discount and all of them have a limit on the actual discount value, which also varies from $150 to $2,000.
E-BIKE Act Consumer Tax Credit
The E-BIKE Act consumer tax credit is a bill that was introduced by the US government on 02/11/2021 to benefit individuals who are looking to purchase an e-bike for commuting purposes. This program allows a tax credit for up to 30% off the price of the e-bike with a ceiling limit of $1,500 per taxpayer (with the max price of the e-bike set at $8,000) minus all credits allowed for the two preceding taxable years. Such credit is available for any individual to claim once in three years. However, married couples qualify for the same tax credit twice in three years.
The E-BIKE Act consumer tax credit is a great way for individuals, especially those with low-income levels, to upgrade their life standards by enabling them to commute to work and errands while tackling climate change at the same time.
https://www.congress.gov/bill/117th-congress/house-bill/1019
Regional Programs
While many states do not have an e-bike program, a few local municipalities are piloting programs of their own. Such programs are usually part of a multi-phase approach designed to soft-launch larger initiatives. These programs are funded by grants from energy companies, environmental initiatives, and city traffic management bureaus. The number of vouchers offered is usually limited, and the programs often “sell out” in minutes, so if you have a chance to participate, you need to act fast.
Which E-bikes qualify?
To qualify for this credit, the e-bike has to meet a certain list of criteria:
- Must be a new e-bike.
- The e-bike must be a class 1, class 2, or class 3 e-bike with a functioning set of pedals and two or three wheels.
- The e-bike must have a motor with wattage not over 750W and not be gasoline-powered.
- It may be an adaptive e-bike.
How to apply?
The way e-bike rebate programs work varies significantly from state to state, and even on the local level. It is prudent that you understand the nuances of a particular program before assuming that you’d be receiving the rebate. For example, local programs usually release a limited number of vouchers that are distributed through a lottery system.
Most state-level programs require that you purchase the e-bike through a participating retailer, who would discount the e-bike at the time of purchase and file the paperwork on your behalf.
Which states offer rebates?
As previously mentioned, the incentives vary from state to state. Let's take a closer look at the list of states that implement them and the differences in their implementation.
Alabama
Alabama has no state-wide or regional incentive/rebate for e-bikes.
Alaska
Arizona has no state-wide or regional incentive/rebate for e-bikes.
Arizona
Arizona has no state-wide or regional incentive/rebate for e-bikes.
Arkansas
Arkansas has no state-wide or regional incentive/rebate for e-bikes.
California
The state of California has the California's Clean Vehicle Rebate Project (CVRP) program which offers rebates not only for e-bikes but also for all zero-emission vehicles. The program is currently operating on regional/county levels but is about to be launched state-wide soon.
CVRP offers individual rebates of up to $1,000 for the purchase of a regular e-bike and up to $1,750 for the purchase of a cargo or an adaptive e-bike. Low-income individuals, whose income is below 225% of the Federal poverty level qualify for an additional rebate of $250 on top.
https://cleanvehiclerebate.org/en
Colorado
The state of Colorado currently has a state-wide e-bike rebate program which is available for all individuals as of April 1, 2024, by the Colorado Energy Office. As per the program, every Colorado resident will automatically receive a $450 discount towards a qualifying e-bike purchase at a qualifying bike retailer once per calendar year.
Individuals with incomes between 80% and 100% of the median Colorado income (moderate-income earners) qualify for a $500 rebate, while low-income individuals (with incomes below 80% of the median Colorado income) qualify for a $1,100 rebate.
Both moderate-income and low-income individuals also qualify for an additional rebate of $100 towards the purchase of e-bike-related equipment as well as an additional rebate of $300 towards the purchase of a cargo e-bike.
https://energyoffice.colorado.gov/ebike-rebates
Connecticut
The state of Connecticut currently has an active state-wide rebate program(as of June 2023) which offers vouchers of $500 to be used for the purchase of an e-bike or $1000 for the purchase of a cargo e-bike. However, the program has certain limitations:
- Vouchers are only available for moderate-income and low-income individuals
- Vouchers are only available for individuals who are at least 18 years old
- The voucher is only available for the purchase of an e-bike that costs $3,000 or less
- The purchased e-bike must have a warranty as well as a fire-proof battery.
Delaware
Delaware has no state-wide or regional incentive/rebate for e-bikes.
Florida
In 2023 Florida passed the Federal Electric Bike Incentive Credit Bill. As per the bill, Florida residents who are looking to buy an e-bike are eligible for up to 30% tax credit (up to $1,500) as long as the e-bike they are looking to purchase costs less than $8,000.
https://bikewalkcentralflorida.org/2023-federal-electric-bike-incentive-credit/
Georgia
Currently, the state of Georgia does not have a state-wide e-bike rebate program in place. However, Atlanta residents may apply for a limited number of available rebates. Income-qualified residents of Atlanta are eligible to receive a rebate for up to $1,500 towards the purchase of an e-bike or up to $2,000 towards the purchase of a cargo e-bike. Rebates are limited to one per resident, and the bike has to be purchased at a participating qualified retailer.
Hawaii
The state of Hawaii currently has an active state-wide e-bike rebate program. Qualifying Hawaii residents are eligible for a 20% discount off the e-bike purchase price, for up to $500. Qualifying Hawaii residents must either not have a car; be enrolled in a low-income assistance program; or be enrolled in a school, college, or university.
Idaho
Idaho has no state-wide or regional incentive/rebate for e-bikes.
Illinois
Illinois has no state-wide or regional incentive/rebate for e-bikes.
Indiana
Indiana has no state-wide or regional incentive/rebate for e-bikes.
Iowa
The state of Iowa doesn't offer any state-wide incentives. However, the Eastern Iowa Light currently has a rebate program that offers up to $150 for a purchase of an e-bike.
Kansas
Kansas has no state-wide or regional incentive/rebate for e-bikes.
Kentucky
Kentucky has no state-wide or regional incentive/rebate for e-bikes.
Louisiana
Louisiana has no state-wide or regional incentive/rebate for e-bikes.
Maine
In 2023, the Maine Electrify Everything Program signed a bill that allows for e-bike rebates for low-income individuals in the South Portland area. Qualifying individuals can receive a rebate of $300 towards the purchase of a regular e-bike or a rebate of $500 towards the purchase of a cargo e-bike.
https://www.portlandmaine.gov/1478/Electrify-Everything-Program
Maryland
As of this moment, the state of Maryland does not have a rebate/discount program for e-bikes, however, there is currently a bill (House Bill 1008) being discussed in the chamber. If passed, the bill will allocate $500,000 of state funds towards e-bike purchase rebates for qualified individuals.
Massachusetts
The state of Massachusetts has a state-wide rebate program which was passed in 2022. As per the program, individuals looking to purchase an e-bike can get a rebate of $500. Individuals in the low- and moderate-income tiers qualify for a rebate of $750. The program also provides a refundable 30% tax credit for all income groups.
Michigan
The state of Michigan introduced its rebate program (e-bike Transportation Incentive Program Act) in 2022. As per the program, Michigan residents may receive a 90% discount off the qualifying e-bike purchase price, of up to $500. For low-income individuals, that cap is $1250.
Minnesota
In 2024 the state of Minnesota introduced the “The Electric-Assisted Bicycle Rebate Program” which is set to roll out in early June. As per the program, the state has allocated $4 million towards rebates for the purchase of qualifying e-bikes, of which $2 million will be spent in 2024 and the remaining $2 million will be spent in 2025. The program will introduce a sliding scale of incentives which will depend on the individual’s income with a capped rebate of 75% for low-income earners. Eligible individuals must be Minnesota residents and over 15 years of age.
https://www.revenue.state.mn.us/electric-assisted-bicycle-e-bike-rebate
Mississippi
Mississippi has no state-wide or regional incentive/rebate for e-bikes.
Missouri
Missouri has no state-wide or regional incentive/rebate for e-bikes.
Montana
Montana has no state-wide or regional incentive/rebate for e-bikes.
Nebraska
Nebraska has no state-wide or regional incentive/rebate for e-bikes.
Nevada
Nevada has no state-wide or regional incentive/rebate for e-bikes.
New Hampshire
New Hampshire has no state-wide or regional incentive/rebate for e-bikes.
New Jersey
The state of New Jersey is currently working on a bill that would allocate an annual budget of $250,000 towards an e-bike rebate program from the Board of Public Utilities. If passed, the bill would offer up to $2,000 rebates for individuals, of which $1,000 would be given after an e-bike purchase and the other $1,000 would be given a year later upon a receipt of proof of “ownership and continuous usage” of the purchase e-bike.
New Mexico
New Mexico has no state-wide or regional incentive/rebate for e-bikes.
New York
The New York State Energy Research & Development Authority is currently working on a bill that would allow e-bike rebates. If passed, the bill will offer rebates of up to 50% of the e-bike cost capped at $1,100.
North Carolina
As of the date of this publication, the state of North Carolina does not have a state-wide e-bike purchase incentive program, however, Raleigh City Council is working on a regional rebate program (The Ral-E-Bike program). The program is set to go live in 2024 and will offer residents of Raleigh vouchers of up to $500 and up to $1,500 for low-income individuals.
https://raleighnc.gov/climate-action-and-sustainability/services/ral-e-bike
North Dakota
North Dakota has no state-wide or regional incentive/rebate for e-bikes.
Ohio
Currently, the state of Ohio does not have a state-wide e-bike incentive program. However, the city of Columbus is working on a program (The E-Bike Incentive Pilot Program) that will give its residents a rebate ranging from $500 to $1,200 (depending on individual’s income) towards a purchase of a qualifying e-bike. Applicants must be at least 18 years of age, be residents of Columbus, and have an annual household income of less than $150,000.
Oklahoma
Currently, the state of Oklahoma does not have a state-wide e-bike incentive program. However, the Oklahoma State Legislature is working on a $200 tax credit for qualifying “electric assist bicycle purchases”.
Oregon
The Oregon Department of Environmental Quality recently launched the Clean Vehicle and Charge Ahead Rebate programs. The programs offer rebates of up to $400 towards the purchase of an e-bike and rebates of $1,200 for low-income individuals.
Pennsylvania
Pennsylvania has no state-wide or regional incentive/rebate for e-bikes.
Rhode Island
The state of Rhode Island has the Erika Niedowski Memorial Electric Bicycle Rebate program which is state-wide. The program offers 30% discounts off the price of purchased e-bikes and e-cargo bikes with a $350 cap. For low-income individuals, the discount is 75% with a $750 cap.
https://drive.ri.gov/erika-niedowski-memorial-electric-bicycle-rebate-program
South Carolina
South Carolina has no state-wide or regional incentive/rebate for e-bikes.
South Dakota
South Dakota has no state-wide or regional incentive/rebate for e-bikes.
Tennessee
Tennessee has no state-wide or regional incentive/rebate for e-bikes.
Texas
Currently, the state of Texas has no state-wide e-bike incentive program, however, there is a regional rebate program in Austin, provided by Austin Energy. The Austin Energy company provides its customers up to $600 for e-bike purchases, with low-income individuals seeing this number go up to $1,300. Applying individuals must submit their purchase invoices within 60 days for the e-bike purchase from one of the approved retailers.
Utah
Utah has no state-wide or regional incentive/rebate for e-bikes.
Vermont
Residents of Vermont currently have a state-wide e-bike incentive scheme available to them. Folks looking to purchase a new certified e-bike can claim a $400 credit as long as their annual income is below $60,000 for individuals or $90,000 for households. The credit goes up to $800 for a purchase of a new certified cargo e-bike. However, those credits can not be claimed for an already purchased e-bike/cargo e-bike.
Virginia
Virginia has no state-wide or regional incentive/rebate for e-bikes.
Washington
The state of Washington is currently working on its state-wide e-bike rebate program and set aside $5 million to be provided towards $300 point-of-sale purchase rebates, with low-income applicants being able to claim up to $1,200.
Another $2 million was set aside for e-bike lending programs. The program is expected to be available for Washington residents sometime in 2024.
Washington D.C.
Washington D.C recently passed its own state-wide e-bike rebate program (Electric Bicycle Incentive Program). Low-income residents of the states can claim up to $1,500 in rebates towards a purchase of a qualifying e-bike and up to $2,000 towards a purchase of a qualifying cargo e-bike. Higher-income applicants can claim up to $750 towards an e-bike purchase and $1,000 towards a cargo e-bike purchase.
West Virginia
West Virginia has no state-wide or regional incentive/rebate for e-bikes.
Wisconsin
Wisconsin has no state-wide or regional incentive/rebate for e-bikes.
Wyoming
Wyoming has no state-wide or regional incentive/rebate for e-bikes.
Coverages and Features
Velosurance core policy offers must-have protection such as accidental damage, theft, or loss in transit. Each policy can be customized by adding additional coverages such as liability protection, uninsured motorist coverage, and medical gap coverage.
Total loss by theft
Bikes are very easy to steal and equally difficult to recover, and a hefty U-lock doesn’t guarantee that your bicycle will remain yours when you return. Velosurance provides peace of mind when your bike is stolen or damaged in the process.
Medical coverage
If you’re hurt and require medical attention, our policy's optional purchase medical payments will cover your medical bills, up to the policy limit. The policy medical payments are paid directly to you to supplement the deductible of your personal health insurance policy.
Any crash or accidental damage
Our policy will pay to replace the bike when it is accidentally damaged and beyond repair, including damage that occurs while being carried on or in your vehicle. If the damage can be repaired, the policy will cover all the costs associated with the bike's repair, including tax, labor, and shipping. Cosmetic damage that does not affect the bike's safety is excluded.
Damage or loss in transit
Bikes often get damaged in transit by personal vehicles, airlines, or courier services. Filing a claim with the airlines and courier services is a notoriously difficult process with a questionable outcome. Our policy covers the insured bike for loss or damage while it's on its way to or from your destination by air or road. Even if the bike falls off a vehicle bike rack or is hit in a rear-end accident, it is covered, no arguments.
Electric bicycle coverage
We cover all electrically assisted Class 1, 2, and 3 bikes with a maximum assisted speed of 28 mph. All coverages available for conventional bikes also apply to e-bikes.
Liability protection
Our policy optional coverage purchase will protect and defend you from your personal liability (injury, sickness, death, or damage to property, including fire damage) that you are found legally liable for. Coverage limits offered: $25,000, $50,000, $100,000, or $300,000 per occurrence.
Worldwide coverage
If your travels take you outside of the USA and Canada, our policy can be extended, at a small additional premium, to cover physical damage, such as a crash, and will also cover theft as well as loss or damage by an airline.
Our shop or yours
When filing a claim you’ll need to provide a repair estimate from a bike shop. We have a nationwide network of partner bike shops that are familiar with our process and can help you speed through your claim. If you prefer to work with your favorite bike shop, that works too.
Gear and apparel
If your insured bike is damaged in a crash, our policy covers the bike as well as your apparel, such as helmets, shoes, glasses, or riding kits, that were also damaged in the crash, and will pay up to $500 per accident and $1,000 per policy term. Spare parts that are not installed on the bike, such as a spare wheelset, are also covered for loss or theft up to $500 per loss and $1,000 per policy term.
Your choice of lock
We do not dictate what type or brand of a lock must be used to protect the bike from theft. You are welcome to use any lock that you trust. The best security is provided when securing an unattended bike with metal locks combined with a high-quality chain. Securing your bike to a solid and immovable object, such as a bike rack, with a high-quality lock will send a bike thief onto the bike secured with a more vulnerable lock.
No depreciation
Our policy never depreciates your bike's insured value. Depreciation is a hidden deductible that increases every year, and is applied if the bike is stolen or totalled. No one is ever happy with a depreciation (actual cash value) insurance settlement: the bike is first devalued and then a deductible is applied, resulting in a reimbursement that is far less than it takes to replace the bike. The policy will reimburse you, without depreciation, for the cost of a replacement bike that is of like, kind, and quality, similar to your totaled bike.
24/7/365 coverage
Our policy covers the insured bike(s) at all times, anywhere in the USA and Canada, and can be extended worldwide on request. There are no exclusions on time of day, or limitations on how long a bike could be stored away from home. 24/7/365 means every minute of every day, no matter where or when.
Standalone bicycle insurance
A standalone policy does not piggyback on coverage provided by the policies you may already have, such as home insurance. A claim against our policy will not reflect on your insurance score and will not affect your rates with other insurance carriers. With home insurance rates going up every year, it’s prudent to reserve your claim for when you really need it, because no matter how expensive your bike is, it’s a lot cheaper than a kitchen fire or a basement flood.
Uninsured Motorist Coverage
One of the scariest things that can happen to a cyclist is getting hit by a car. This coverage will cover medical expenses, physical therapy, mental health services, lost wages, and other expenses that arise from a bicycle-car accident.
Permissive Use Policy
You can lend the bike to anyone you choose and it will be covered. The bike and the person riding the bike are covered as if it were you riding it – this includes theft and crash damage as well as any purchased optional coverages.
Why Velosurance is best for your bicycle
Not all types of insurance are created equal. Velosurance levels the playing field by offering a stand-alone bike insurance policy, where claims will not affect your homeowner or renters policy premiums.
| Policy Coverage |  | Homeowner/Renters Policy |
|---|---|---|
| Insured at Full Value | Yes | Possibly |
| Crash Damage | Yes | No |
| Theft Coverage | Yes | Limited |
| Theft by Force | Yes | No |
| Theft of Accessories | Yes | Limited |
| Theft Away From Home | Yes | Possibly |
| Vehicle Contact | Yes | No |
| Personal Liability | Yes | Possibly |
| Permissive Use Policy | Yes | No |
| Replacement Bike Rental | Yes | No |
| Event Fee Return | Yes | No |
| Cycling Apparel Coverage | Yes | No |
| Medical Payments | Yes | Possibly |
| Racing Coverage | Yes | No |
| E-bikes | Yes | No |
| Coverage in-transit | Yes | No |
| USAC, USAT and IMBA Member Discount | Yes | No |
| FREE INSTANT QUOTE |
Not all insurance policies cover bikes equally and it often takes a claim to find out that your bike isn't covered. We did the hard work and read all the fine print. To see the difference, see bicycle insurance comparison.
Customer Stories
Client satisfaction is our #1 goal. Here's what our clients say about Velosurance
"Velosurance is truly a necessity for any cyclist who is serious about their bicycle. I don't have to worry about my bike as I know if anything happens I'm covered. Dealing with Denis and Dave is also fantastic as they answered all my questions and helped through the enrollment process. Give velosurance a shot, you definitely wont be disappointed. "
Julian D
Miami, FL
"Excellent customer service and even better insurance. They were remarkable when I was involved in a case of vehicular violence (hit and run on my bicycle). I've recommended bicycle insurance to so many people, and it's always Velosurance. I'll use them for life. "
Chris R
Los Angeles, CA
"This was my first ever insurance claim. I'm pleased to be able to say that your company did a wonderful job in helping me through the process. I recommend your company to all of my racing friends. Thanks for doing right by me! "
Bryan L
New York, NY
Check out Velosurance reviews to see what else people are saying about us.
Contact Us
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No matter where your adventures take you, protect your bicycle and yourself from the unexpected with America's best bicycle insurance.
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Our mission
The Velosurance mission is to be fair to everyone involved, and to offer our best advice to clients so they can make an educated decision about their bicycle insurance coverage. We also like to ride as much as possible.
We are riders too
Bicycle prices increase every year and cyclists who are serious about their sport are spending big money on high value bikes. Other forms of insurance, like homeowners and renters insurance, do a poor job insuring high value bicycles so we founded Velosurance to fix that.
Velosurance provides a stand-alone, no bike value depreciation, bicycle insurance policy to replace the cobbled together, sub standard coverages offered by traditional insurance.
We are cyclists just like you, and we understand that when your bike gets damaged in an accident you want the shortest possible downtime. We make it our mission to see that your claim check arrives before the repair parts do and you get back pedaling as soon as you want to.
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Velosurance discounts
Members of USA Cycling, USA Triathlon, and International Mountain Bicycle Association (IMBA) receive discounts on Velosurance bicycle insurance products.
Velosurance provides bicycle insurance policies in the following states: Alabama, Arkansas, Arizona, California, Colorado, Connecticut, D.C., Delaware, Florida, Georgia, Iowa, Idaho, Illinois, Indiana, Kansas, Kentucky, Louisiana, Maine, Massachusetts, Maryland, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, North Carolina, New Hampshire, New Jersey, New Mexico, New York, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, Wisconsin.