Colorado residents can now get a $450 tax credit if they purchase an e-bike, lawmakers have announced.
On April 1, Governor Jared Polis and the Colorado Energy Office announced the country's first electric bike tax credit. Colorado residents are now eligible for $450 off an e-bike purchase in an effort to help the state meet its goals to reduce pollution.
According to the Colorado Energy Office, the discount would apply automatically at the point of sale, meaning an instant save for e-bike purchasers. However, Coloradans must provide proof of address, such as a driver's license or bank statement, when purchasing to show that they live in the state.
An e-bike is eligible for the credit if it meets certain certification standards and has an electric motor that is 750 watts or less. Up to one e-bike purchase can be made each year using the discount.
Newsweek has contacted the Colorado Energy Office for comment via email outside normal working hours.
"This e-bike tax credit builds 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," Polis said in a statement.
"Whether it's picking up groceries or making sure you get to work, e-bikes are a great way for so many Coloradans to not only make their everyday short commutes but also save money and help lower greenhouse gas emissions," said Will Toor, the executive director of the Colorado Energy Office. "We look forward to implementing and building this rebate program over the next several years and believe it will be an important part of our overall climate work."
The tax credit is in place thanks to HB23-1272, which passed the state legislature and was signed into law in 2023. The bill was sponsored by four Democrats: Representatives Mike Weissman and Junie Joseph and state Senators Lisa Cutter and Steve Fenberg.
More than 60 retailers have signed up to offer the discount, with the Colorado Energy Office saying the list would likely expand over the coming year. However, some retailers have said they will not participate in the program because of concerns over business owners having to temporarily front the cost of the rebate. Sellers cannot recuperate the $450 discount until after filing their 2024 tax returns in 2025.
Read more: Tax Write-Offs To Claim On Your Tax Return
MacKenzie Hardt, the owner of Hardt Family Cyclery in Aurora, Colorado, told CPR News: "I have to be able to support myself, my family, and my one employee. This program doesn't allow for that, which is really unfortunate."
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