Your Guide to US E-bike Tax Credit & Rebate in 2024

In the last few years, e-bikes have become increasingly popular, and most bike brands and some car brands have been shifting more and more resources to designing and manufacturing them.

Fortunately, more and more individual states are implementing e-bike rebate programs, which provide residents with discounts for new e-bike purchases.

Which Electric Bikes Qualify for the Tax Credit?

The e-bike has to meet the following requirements to qualify for the tax credit:

• The bike must have a strong motor capable of less than 750 watts.
• The bike should either be a class 1, class 2, or class 3, and it should have pedals that help in propelling it forward.
• Lastly, the bike should also have the ability to carry one person.

What is the E-Bike Act Consumer Tax Credit?

The E-bike Act consumer tax credit was introduced in 2021 to help people who want to buy an electric bike commute. It provides a tax credit for an e-bike of up to 30% of the cost of the e-bike, with a maximum value of up to $1500 for an e-bike that costs less than $8000. This credit is available to an individual once every three years. But joint couples are entitled to use this credit twice in three years.

As we move on, let us consider the rebates and tax credits offered in various states of the US. Remember that these incentives differ from state to state; therefore, do not forget to look up which applies to you.

FURTHER READING: 5 Best Budget Electric Bikes in 2024

How Much is the Rebate for E-bikes in Your State?

Different states in the USA offer varying rebates and incentives for e-bike purchases, aiming to promote sustainable transportation. The rebate amounts and eligibility criteria vary widely, depending on state-specific policies and programs.

Some states provide a few hundred dollars per e-bike, while others offer more generous incentives of $1,000 or more. Remember to research the policies in your specific state to see what rebates may be available. This section leads you to explore the e-bike rebate amounts across different states to help you maximize your savings.

California

California E-Bike Incentive Project will rebate up to $1,000 for regular e-bikes and $1,750 for cargo or adaptive e-bikes. Applicants with an income below 225% of the Federal Poverty Level or who live in disadvantaged census tracts can avail of an extra incentive of $250.

Clean Vehicle Rebate Project (CVRP) of California provides rebates for electric bikes and other vehicles that produce zero emissions. An individual can claim a $ 1,000 to $7500 rebate on the acquisition or leasing of a qualifying electric bicycle.

There are numerous other smaller, local programs in California. Learn more here

Colorado

The Colorado Energy Office has a rebate program for low- or moderate-income residents who want to buy a new e-bike and the necessary equipment. For moderate-income earners (household income between 80% and 100% of the area median income) can obtain a $500 rebate, and low-income earners (household income below 80% of the area median) can avail of a $1,100 rebate. The other group of incomes can also get an additional $100 rebate for the equipment and another $300 if they decide to go for the e-cargo bike.

Denver and Boulder run their schemes, which give a better rebate, but both are currently closed for applications. Learn more here

Connecticut

In June 2023, Connecticut introduced an electric bike incentive program, providing a standard voucher worth $500 and an extra $1,000 for low-income residents. Under the voucher, the residents could purchase an e-bike costing less than $3,000 as long as it came with a warranty and a fire-proof battery. The program has a $500,000 budget, but with a late budget increase to $750,000, they could only offer the incentive to 500 low-income applicants. Learn more here

Hawaii

Residents of Hawaii can enjoy a rebate of up to $500 or a 20% discount on the cost of a new e-bike or electric moped. Applicants must either not have a car, are enrolled in some low-income assistance program, or are school, college, or university students. Learn more about the program and apply here

Illinois

The Illinois Electric Vehicle Rebate Program, financed by the Illinois Climate and Equitable Jobs Act, offers $4,000 off the price of a new electric vehicle and $1,500 off the cost of an electric motorcycle. The most recent rebate cycle was open between November 1, 2023, and January 31, 2024. Learn more here

Maine

In the summer of 2023, the governor signed a bill of electric bike rebates to income-qualified residents. The program is still under process.

In South Portland, the Maine Electrify Everything Program provides rebates of $300 toward an electric bike. But when you buy an e-cargo bike, you are entitled to a $500 rebate. Lern more here

Maryland

A bill for an electric bicycle rebate program is in the early stages of being passed into law. The bill will require the governor to allocate $500,000 a year for e-bike rebates in the annual budget. The law is to be effective in the 2025 fiscal year.
The Clean Vehicle Credit of up to $7500 is available to all taxpayers who purchase an eligible electric vehicle through the Maryland EV Tax Credit.

Massachusetts

In 2022, the Massachusetts state legislature enacted a bill for an electric bike rebate program. The program provides rebates of $500–$750 for the purchase of an e-bike and a refundable tax credit of 30% of the cost of a qualified electric bicycle. One of the benefits is that the rebate for electric bicycle customers would be up to $500, while it would be $750 for low- and moderate-income consumers. The Healey Administration says they intend to roll out the rebates to residents in 2024. Learn more here

Michigan

A bill was introduced in May 2022. It is still in the early stages, but if passed, the bill would provide residents with 90% discounts on the cost of an e-bike, up to $500. For the poor residents, the cap will be $1,250.

However, the City of Ann Arbor has partnered with the local e-bike dealers and offered $100 off on preferred e-bikes and $50 off on accessories.

Minnesota

The state has budgeted $4 million for a new e-bike incentive program to be rolled out in 2024. The rate structure will be progressive based on the income level, with a maximum rebate of 75% for low-income residents, while any resident earning over $50,000 will get a rate of 50%. One should be a Minnesota resident aged 15 years and older and a taxpayer to qualify. Learn more here

Nevada

NV Energy offers a $500 credit to residential users who buy a Level 2 EV charging station. NV Energy offers a $2,500 rebate to low-income customers who purchase new or used electric vehicles. Low-income customers are those who meet the condition of living in homes with annual incomes not exceeding 200% of the poverty threshold established by the federal government.

New Jersey

A bill to allocate $250,000 annually to a rebate scheme was submitted to the House in March 2023. The bill would mandate the Board of Public Utilities to create a rebate program for e-bikes. The program would provide up to $2,000 to residents.

Florida

In April 2023, Florida passed the Federal Electric Bike Incentive Credit Bill 2023. Residents of Florida who buy e-bikes as a sustainable and environmentally friendly means of transport are allowed to get a tax credit of 30% up to $1,500 for the purchase of less than $8,000 e-bikes.

New York

In May 2023, a bill was tabled to expand the 'Drive Clean' electric car rebate program to include e-bikes, dubbing the extension 'Ride Clean'. The bill suggests that a person who purchases an e-bike would get an instant rebate of 50%, capped at $1,100.

Other regional initiatives also exist in New York, such as the NYC trade-in program for delivery riders. Learn more here

Oregon

A bill has been proposed that would provide a rebate of up to $400 for residents and $1,200 for low-income residents.

In Ashland and Eugene, utilities provide rebates for e-bikes. Ashland Electric Utility provides customers with up to a $600 rebate, while in Eugene, EWEB customers receive a $300 rebate.

People of Oregon can save up to $7500 on the cost of purchasing or leasing an eligible electric bike via the Clean Vehicle and Charge Ahead Rebate programs administered by the Oregon Department of Environmental Quality.

A new EV that satisfies the criteria can be purchased or leased by all Oregonians eligible for up to $2,500. Oregon's low- to moderate-income residents can enjoy an additional $5,000 tax benefit on eligible new or used EVs. This initiative is on hold as of May 2023 and will be launched only after March 2024. Learn more here

Rhode Island

The Erika Niedowski Memorial Electric Bicycle Rebate is open to Rhode Island citizens. The standard program gives a 30% discount on an e-bike or e-cargo bike, not exceeding $350. It provides 75%, up to $750, of the cost of a new e-bike or e-cargo bike for low-income applicants. Learn more here

Vermont

For Vermont residents, a new certified e-bike is eligible for a $400 credit if the gross income is less than $60,000 (individual filing), $75,000 (head of household), or $90,000 (joint filing). An e-cargo bike is eligible for an $800 credit. However, you can't claim a bike you have already purchased.

The rebate for an electric bike from a local shop is up to $200 for the residents of Burlington. As a rebate, utility users of the VPPSA have $100 at their disposal for an e-bike or a conversion in the state.

Other schemes, specific to each area, are found in cities throughout Vermont.

Learn more about VPPSA - Serviced areas

Lean more about Colchester and Surrounding areas

Washington D.C.

The district's new Electric Bicycle Incentive Program is anticipated to start receiving applications in the spring of 2024. The maximum claimable amount for a lower-income resident is $2,000 for a cargo e-bike and $1,500 for an ordinary e-bike, and the maximum amount for a higher-income applicant is $1,000 for a cargo e-bike and $750 for an e-bike.

Conclusion

After reading this article, hopefully you find an e-bike tax credit and rebate policy that suits you. If you do not live in a state where electric bike rebates are available, then we can make e-bikes more affordable through the nationwide Incentive Electric Bicycle Kickstart For The Environment Act.

Fret no further and get your new bike right away. Apart from saving money, you will enjoy other benefits of riding an e-bike, such as building up your body with aerobic cycling and avoiding traffic jams during your daily commute. Go visiting the online store for more best deals on Heybike electric bikes!

FAQ

Q: Can I use the e-bike tax credit to buy a conversion kit?

Yes, the e-bike tax credit can be used to purchase an electric bicycle conversion kit. A conversion kit allows you to transform a traditional bicycle into an e-bike by adding a motor and battery. As long as the conversion kit meets the requirements of the e-bike tax credit, such as a top speed of 20 mph and a motor of 750 watts or less, you can claim the credit when filing your taxes.

It's important to keep in mind that the tax credit only applies to the cost of the conversion kit itself, not the entire cost of the traditional bicycle. Additionally, the credit can only be claimed once, so if you've already used it to purchase a pre-built electric bike, you won't be able to use it again for a conversion kit.

Overall, the e-bike tax credit provides a great opportunity to make the switch to electric bicycles, whether you choose a pre-built model or a conversion kit. Be sure to keep all your receipts and documentation to claim the credit when filing your taxes.