The U.S. state of Colorado is implementing a tax credit for the purchase of electric bicycles (e-bikes) starting from April 1, 2024. This program was approved in a law signed by Governor Jared Polis and will run until the end of 2032, investing an estimated $120 million. According to a database maintained by Portland State University, this is currently the largest public investment in e-bike discounts in North America.
The tax credit will provide eligible residents a $450 discount when purchasing an e-bike. This initiative aims to encourage the adoption of eco-friendly transportation options and reduce carbon emissions in the state. By making e-bikes more affordable, the program hopes to make them a viable alternative to traditional gasoline-powered vehicles for commuting and recreational use.
Residents living in Colorado are eligible for the state’s electric bicycle (e-bike) discount program. To qualify, they must provide proof of a Colorado residential address at the time of purchase. The required documentation must be dated within three months of the e-bike purchase. The discount, valued at $450, is applied directly at the time of purchase from a participating retailer. However, it’s important to note that not all stores are part of the program, so customers should check the list of participating retailers before making their purchases. Additionally, each Colorado resident is limited to receiving the $450 discount only once per year.
Due to the inability to provide quarterly reimbursements to bicycle retailers, some sellers with limited cash flow have chosen not to participate in the program. As a result, the number of participating retailers is limited. However, the head of the Energy Office is working to address this issue and plans to offer quarterly reimbursements to bike sellers starting in 2025.
E-bikes are becoming one of the powerful solutions that can help reduce climate change and move towards a zero-carbon society. The near-zero tailpipe emissions of e-bikes can effectively improve the climate problem if the technology is widely adopted. Additionally, e-bikes are generally slower than other electric mobility options, making them a safer means of transportation.
The introduction of this tax credit is part of Colorado’s broader efforts to promote sustainable transportation and address climate change. The state has set ambitious goals to reduce greenhouse gas emissions and the goal of zero-carbon objectives. The e-bike tax credit is one of the many initiatives the state is implementing to achieve these objectives.
Colorado’s electric bicycle (e-bike) subsidy program will be available to all residents until 2033. The program can also be combined with local initiatives offered by cities across the state, allowing consumers to receive even greater discounts when purchasing e-bikes.