Colorado offers tax credits on e-bikes

Colorado has launched a statewide rebate programme which will see residents eligible for up to US$450 off the price of a new e-bike.

The state’s energy office, which administers the scheme, says the credit “reflects Colorado’s bold climate goals while promoting sustainable communities for future generations”.

“This e-bike tax credit builds on Colorado’s nation-leading work to reduce pollution and traffic, save people money and protect our environment. This will help Colorado reach our bold climate goals, invest in future generations, and expand access to clean transportation options now,” said Colorado Governor Jared Polis.

Proof of a physical Colorado address is required at the time of purchase, and documents must be dated within three months of the e-bike date of purchase. Not all e-bikes are eligible for the credit and the state has told residents to check with the retailer to confirm that the e-bike meets programme requirements to qualify for the discount.

Over 50 retailers have signed up to the scheme according to the state’s energy office but some businesses have been reluctant to participate since they do not get reimbursed for the discounts until they file their 2024 taxes.

Growing trend

In 2022 the City of Denver launched a similar point-of-sale tax rebate for city residents, offering e-bike vouchers worth up to US$1,200 for an e-bike and US$1,400 for an e-cargo bike. The scheme has proved popular with residents, and the city has since offered new rounds of vouchers every few months with funding from a special sales tax for climate projects.

To date, the city has subsidised the purchase of almost 8,000 battery-powered bicycles from local shops with the next round of rebates due to be released on 30 April.

Several US cities have adopted similar rebates in recent years, including Tampa, Washington D.C. and Austin.

In September 2023, Washington D.C. approved a scheme to provide rebates for e-bikes, e-cargo bikes, maintenance, accessibility modifications, bike locks and replacement batteries, with vouchers ranging from US$75 for bike locks to US$2,000 for an e-bike.

In January 2024, Atlanta City Council voted to allocate US$1 million to an e-bike rebate programme with rebates of up to US$1,500 for a standard e-bike and US$2,000 for a cargo e-bike. Seventy-five percent of the funds will be assigned to residents who earn less than US$54,000 per year.

Image: gotrax-unsplash