E-bike tax credits and rebates in the USA

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 an e-bike incentive bill "the Federal Electric Bike Incentive Credit Bill" was introduced(but has not passed yet). As per the bill, Florida residents who are looking to buy an e-bike will be 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.