Your Guide to US Electric Bike Rebates & Tax Credits
by GanterRosie on Jan 23, 2024
Electric bikes are becoming more popular because people don’t want to spend on conventional cars anymore. They are expensive and their maintenance costs thousands of dollars each year.
People now, are more aware of climate change. They want to live a sustainable lifestyle and riding an electric bike is a major step towards this. The government also understands how important sustainable living is for our planet.
The US government is offering rebates and tax credits for electric bikes for all residents. However, these rebates vary from state to state. Here, I’ve listed the current active e-bike rebates and incentive schemes available across the USA.
But first, let me tell you more about the E-BIKE Act consumer tax credit!
What is the E-BIKE Act Consumer Tax Credit?
The E-BIKE Act consumer tax credit was introduced in 2021 to benefit individuals who are looking to purchase an electric bike for commuting purposes. It offers a tax credit of up to 30% off the cost of the e-bike, with a maximum value of up to $1500 for an e-bike that costs less than $8000. For a single person, this credit is available once every three years. Joint couples, however, can avail of this credit twice in three years.
The E-BIKE Act is a sensible strategy to promote e-bike ownership because it offers completely refundable tax benefits for individuals at lower economic levels. By encouraging Americans to purchase and utilize electric bikes, governments make it easier for them to upgrade their standard of living and also help tackle the climate issue.
Now, let's take a look at the rebates and tax credits offered in different states of the US. Remember, these incentives vary by state, so make sure to check which ones apply to you.
California's Clean Vehicle Rebate Project (CVRP) offers rebates for electric bikes and other zero-emission vehicles. An individual can get a rebate from $1000 to $7500 on the purchase or lease of an eligible electric bike.
Colorado's recent state-wide e-bike rebates program launches in August 2023. The government generously put 10 million dollars into the program’s first year. Residents earning at or below 80% of the region's median income are eligible for the largest discount, a $1100 rebate. Those who earn 80 to 100 percent of their AMI are eligible for a $500 refund. There are no reductions for buyers who earn more than the adjusted median income.
There are additional discounts for applicants who buy a cargo e-bike, they can claim an additional $300. All Coloradans will be entitled to a $450 discount on e-bikes at approved stores beginning April 1, 2024, but the greater income-qualified discounts will no longer be accessible.
Connecticut E-bike incentive program offers rebates of a minimum of $500 for the purchase of an electric bike. Connecticut residents who are 18 years or older can apply for this tax rebate. However, these rebates are only available for low to moderate-income families.
Florida just passed the Federal Electric Bike Incentive Credit Bill 2023. Florida residents who buy e-bikes as a sustainable and environmentally friendly means of transportation are eligible for a 30% tax credit of up to $1,500 for the purchase of less than $8,000 e-bikes.
Hawaii residents can get a tax credit of up to 20% of the cost of the electric bike, with a maximum value of up to $500.
The Illinois Electric Vehicle Rebate Program, funded by the Illinois Climate and Equitable Jobs Act, pays $4,000 off the price of a new EV and $1,500 off the price of an electric motorcycle. Two rounds of these rebates have already been completed successfully. The third round will start from November 1st, 2023.
Maine Electrify Everything Program offers rebates of $300 to South Portland residents for an electric bike. But if you purchase an e-cargo bike, you can get a rebate of $500.
The Maryland EV Tax Credit offers a Clean Vehicle Credit of up to $7500 to all taxpayers who purchase an eligible electric vehicle.
Massachusetts has a state rebate program that offers $500-$750 rebates for e-bike purchases, as well as a refundable tax credit equal to 30% of the cost of a qualified electric bicycle. Electric bicycle customers would receive a rebate of up to $500 while low- and moderate-income consumers would receive a rebate of up to $750.
As per Michigan e-bike Transportation Incentive Program Act, residents receive vouchers of up to $500 or 90% of the retail cost of an e-bike, whichever is less. The amount would rise to $1,250 for people living in low-income households. This bill is still under consideration.
The City of Ann Arbor, however, has worked with local e-bike vendors to offer a $100 discount on chosen e-bikes as well as a $50 off on accessories.
In the 2023 legislative session, the Minnesota legislature passed legislation to establish a new Electric-Assisted Bicycle Rebate Program, which is due until July 2024. It will spend $2 million in 2024 and another $2 million in 2025 on e-Bike purchases, including eligible accessories. Residents will get a maximum rebate of 75% of the bicycle up to $1500 value. The rebate amount will be decreased based on your adjusted gross income.
NV Energy provides a $500 credit to residential customers who purchase a Level 2 EV charging station. Low-income customers can receive a $2,500 rebate from NV Energy when they buy a new or used electric vehicle. Customers who qualify as low-income must reside in households with annual incomes that are equal to or below 200% of the federal poverty threshold.
New Jersey currently does not offer any electric bike rebate program.
New Mexico passed the senator bill to offer a $1200 instant rebate on electric bike purchases with a protective helmet. Mexico is spending approximately $6 M to help low-income residents.
The Ride Clean e-bike program, recently developed by the New York State Energy Research & Development Authority, would provide a 50% rebate on e-bike purchases up to $1,100. The bill is expected to be presented for vote in the National Assembly this year.
Oregonians can save up to $7,500 on the purchase or lease of an eligible electric bike by taking advantage of the Clean Vehicle and Charge Ahead Rebate programs offered by the Oregon Department of Environmental Quality.
For the purchase or lease of a new EV that meets the requirements, all Oregonians are eligible to receive up to $2,500. Oregon residents with low and moderate incomes can save an additional $5,000 on eligible new or used EVs. Unfortunately, this initiative is temporarily suspended as of May 2023 and it will only start after March 2024.
The Erika Niedowski Memorial Electric Bicycle Rebate Program offers a standard rebate of up to $350 or 30% of the final cost of an e-bike or an e-cargo bike. Income-qualified individuals can save up to $1000 or 75% of the total cost of an e-bike or e-cargo bike, whichever is less.
Burlington residents can receive rebates of up to $200 for the purchase of an electric bike from a local shop. A $100 rebate is available to utility users of the Vermont Public Power Supply Authority (VPPSA) on the purchase of an e-bike or a conversion in the state.
Washington State set aside $5 million for electric bike rebates of up to $1,200 in their 2023-2025 budget, with an additional $2 million for e-bike lending programs. Residents will receive a $300 point-of-sale reimbursement as part of the campaign. Low-income residents are eligible for rebates of up to $1,200. The scheme also specifies that bicycle-related accessories are eligible for refunds.
The D.C. recently approved the incentive program for e-bikes. D.C. lower-income residents can get an incentive of up to $2,000 for a cargo e-bike and $1,500 for a conventional e-bike. The benefits are reduced by half for all other citizens, amounting to up to $1,000 for a cargo e-bike and $750 for a conventional e-bike.
Electric bikes are a great way to get around without causing air pollution or making traffic worse. They're easy on the environment since they don't burn gas. The only problem is their high price. But with electric bike rebates and incentives offered by different states in the USA, you can easily buy a high-quality e-bike at a much cheaper price. Now's the time to start pedaling in style. If you're ready, check out our awesome selection of high-performance e-bikes!