On April 11, 2024, the Massachusetts Clean Energy Technology Center issued a Request for Proposals (RFP) to identify qualified companies with experience in clean transportation to help run the statewide e-bike program this summer. The federal government is ready to commit $4.5 million to help launch this statewide program, which aims to encourage the adoption of clean transportation alternatives.
Incentive Program Coverage
Low-income families with incomes below 225% of the federal poverty line($32,805 for a single person, $67,500 for a family of four) can receive up to $1,200 in rebates or up to 90% of the total cost. Moderate-income families with incomes below 400% of the federal poverty line($58,320 for a single person, $120,000 for a family of four) can receive up to $800 in rebates or up to 75% of the total cost. Additionally, families can purchase essential bike accessories such as helmets, lights, and locks for an additional $150.
Note that e-bikes can only be purchased at participating Massachusetts stores as part of the program. The e-bike must be purchased within 60 days of receiving the notification of acceptance. All e-bikes purchased must meet the legal definition of an e-bike under Massachusetts law.
The federal government plans to allocate $4.5 million in funding, which could enable subsidies for thousands of new electric bicycle purchases. However, the request for proposals (RFP) also notes that “the demand for the program is likely to outpace the available number of incentives.” This suggests that the funding, while substantial, may not be sufficient to meet the anticipated high level of interest in the e-bike subsidy program.
Massachusetts is one of the regions with significant growth potential. According to the Massachusetts Clean Energy Center (MassCEC), transportation accounts for the largest share of the state’s greenhouse gas emissions at 37%. Based on the results of similar programs implemented in other states, electric bicycles (e-bikes) have emerged as one of the most effective alternatives for clean transportation and a cost-effective way for governments to reduce environmental pollution. However, due to the high cost of e-bike production and other factors, the adoption of e-bikes by residents has been somewhat limited. To address this, the state has designed this program to help popularize e-bikes in low- and middle-income households.
The program, which is still in its early stages, is expected to be fully rolled out statewide this summer and is anticipated to provide rebates to 13% of the state’s population.