Incentives for electric bikes are becoming more prevalent these days as states, counties, and cities roll out programs for citizens to ride more and drive less. There is even the possibility of a federal electric bike incentive program in the works.

Minnesota is the latest state to follow California and Colorado’s lead by launching an electric bike incentive program to make eBikes more attainable for its citizens, especially low to moderate income.

As part of the transportation budget bill, Minnesota lawmakers allocated $4 million for the eBike incentive program, with $2 million allocated annually for the years 2024 and 2025.

The Minnesota eBike Incentive Program Details

How Much Will the Incentives Be?

Under this program, the maximum rebate available is $1,500 or up to 75 percent of the new e-bike's (Class 1, 2, 3) value that can also include accessories like a bicycle helmet, lights, lock, luggage rack, basket,​ bag or backpack, fenders, or reflective clothing.

However, the rebate amount scales based on the recipient's income. Individuals with higher incomes will receive a smaller rebate. The rebate for the electric bike ranges from 50% to 75% of the bike's value, with a maximum limit of $1,500. The rebate amount decreases by 1% for every $4,000 earned over $25,000 (or $50,000 for married couples filing jointly) until it reaches 50%.

A couple filing their taxes jointly can each get their own eBike rebate.

To ensure equitable distribution, Minnesota's program reserves 40 percent of the funding specifically for individuals earning less than the state's median income. This income threshold is approximately $78,000 for married couples or $41,000 for single filers.

Who is Eligible for the eBike Rebate?

The eligibility requirements are pretty straight forward as follows:

(1) Must be at least 15 years old;​

(2) is a resident individual taxpayer at the time of application for a rebate certificate and​ in the previous calendar year; and​

(3) was not claimed as a dependent on another return in the taxable year

How Do You Get the eBike Rebate?

To get the eBike rebate you will need to submit an application to the Minnesota Department of Revenue in order to obtain a rebate certificate. The rebate certificate will be redeemable at qualified retailers.

Also, bike shops must apply to become qualified retailers to participate in the program.

When Will the eBike Rebates Be Available?

As of writing this article, the timeline for the rollout of the rebates has not been determined yet.

The rebates will be available on a first come, first serve basis. Based on the popularity of other eBike incentives (like Denver’s program) it would be a good idea to submit an application as soon as it is available.

Getting More Information

Here is the legal description for the eBike rebate. Stay tuned to your local Minnesota news and check the Minnesota Department of Revenue website for updates on the eBike rebates.

Why Electric Bike Incentives Are a Good Idea

Equity and Access: Electric bike incentives can contribute to improving equity and access to transportation options. They can benefit individuals who may not own a vehicle or have access to public transportation, offering them an affordable and efficient mode of travel. Electric cars and trucks have incentives, so it makes sense that electric bikes would too.

Environmental Benefits: Electric bikes are more environmentally friendly than gas-powered cars and trucks. By promoting electric bikes, governments aim to reduce carbon emissions, improve air quality, and mitigate the impacts of climate change. Electric bikes produce zero “tailpipe” emissions and they have significantly lower energy consumption compared to cars, trucks, and motorcycles.

Sustainable Transportation: Electric bikes contribute to sustainable transportation solutions by reducing traffic congestion, particularly in urban areas. They can help alleviate the strain on existing transportation infrastructure and reduce the demand for parking spaces. Incentivizing electric bikes encourages people to choose a more sustainable mode of transportation for short to medium distances, reducing the reliance on cars, trucks, and public transportation.

Health and Well-being: Electric bikes provide an opportunity for individuals to engage in physical activity and lead a more active lifestyle. The electric assist helps with pedaling, making it easier for people, including those who are less physically fit or have mobility limitations, to ride bikes and integrate exercise into their daily routines. Incentives for electric bikes can help promote public health and well-being by encouraging physical activity. Not to mention they are fun to ride which is a bonus for mental health!

Energy Efficiency: Electric bikes are more energy-efficient when compared to gas powered cars and trucks. They require much less energy per mile traveled compared to automobiles or motorcycles. Incentives for electric bikes can help promote energy conservation by encouraging the use of a more efficient mode of transportation.

Cost Savings: Electric bikes can provide significant cost savings over time. They are more economical to operate and maintain compared to cars, trucks, and motorcycles. By offering incentives such as tax credits, rebates, or grants, governments aim to reduce the initial purchase cost of electric bikes, making them more accessible and affordable for a wider range of people.

Technology Adoption: Incentives for electric bikes can help stimulate innovation, research, and development in the electric mobility sector. By encouraging the adoption of electric bikes, governments support the growth of the electric vehicle industry, which can lead to advancements in battery technology, charging infrastructure, and overall electric transportation systems.

Overall, electric bike incentives are aimed at promoting sustainable and equitable transportation, reducing emissions, improving public health, and fostering a transition towards a more energy-efficient and environmentally friendly transportation system.

Stay Tuned

Stay tuned to Denago.com for more eBike incentive program updates that are on the horizon.

And enjoy your rides!

-Pete