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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
In April last year, the Washington State Legislature passed a new law to offer a $300 point-of-sale rebate for e-bikes, with individuals earning below $75,00 can claim back up to $1,200. The act provides $5 million for rebates and an extra $2 million for e-bike lending programs throughout the state. It will be made available to residents in 2024.
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.
Hopefully, this article has enlightened and assisted you in locating an e-bike rebate that suits you to get you on the saddle and pedaling away. 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. We want to make it possible for people to be happy with the help of motion, and this is how we achieve that. Enjoy the ride!