Electric bicycles have surged in popularity over recent years, with both traditional bicycle manufacturers and automotive companies investing heavily in their design and production. Fortunately for consumers, many states have implemented electric bicycle rebate programs to make these eco-friendly transportation options more affordable.
What Makes an Electric Bike Eligible for Tax Credits
For an electric bicycle to qualify for tax incentives, it must meet these key requirements:
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Feature a motor with a power output not exceeding 750 watts
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Be classified as either class 1, class 2, or class 3, and include functional pedals
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Meet UL 2849 certification standards as mandated by new federal Consumer Product Safety Commission (CPSC) guidelines
Ebike Act Consumer Tax Credit
Introduced in 2021, the Ebike Act consumer tax credit aims to promote electric bicycle commuting. This program offers a tax credit of up to 30% of an ebike's purchase price, with a maximum credit of $1,500 for bicycles costing less than $8,000. Individual taxpayers can claim this credit once every three years, while married couples filing jointly can utilize it twice within the same timeframe.
Many states, including California, Colorado, and New York, now adjust their income thresholds annually to account for inflation. Additionally, most 2025 programs in states like Massachusetts and Oregon have implemented point-of-sale rebate systems, allowing consumers to receive discounts directly at purchase.
2025 Update: The Electric Bicycle Incentive Kickstart for the Environment (E-BIKE) Act was reintroduced in Congress in 2024. If passed, this legislation would provide a 30% refundable tax credit (up to $1,500) for electric bicycles priced under $8,000. As of March 2025, this bill remains pending federal approval.
State-by-State Rebate Programs in 2025
California
The California Ebike Incentive Project now offers enhanced rebates of $1,200 for standard electric bicycles and $2,000 for cargo or adaptive models. The program prioritizes low-income residents, with additional incentives available for those living in disadvantaged areas. The Clean Vehicle Rebate Project (CVRP) has expanded to include ebike trade-ins for cars, offering an additional $500 rebate.
There are numerous other smaller, local programs in California.
Colorado
Colorado's statewide program has increased its rebates to $750 for moderate-income earners and $1,500 for low-income residents. Denver's popular rebate program reopened in 2024, providing $1,200 for standard electric bicycles and $1,700 for cargo models.
Florida
Since April 2023, Florida residents have been eligible for a tax credit of 30% (up to $1,500) on electric bicycles priced below $8,000, following the passage of the Federal Electric Bike Incentive Credit Bill.
New York
New York passed the Ride Clean Act in 2024, offering $1,000 instant rebates for ebikes (subject to income limits). New York City has implemented an additional $500 trade-in rebate for gasoline-powered vehicles.
Other regional initiatives also exist in New York, such as the NYC trade-in program for delivery riders.
Connecticut
Connecticut's electric bicycle incentive program provides a standard $500 voucher, with an additional $1,000 available for low-income residents. The program applies to ebikes priced under $3,000 that come with a warranty and fire-resistant battery.
Hawaii
Hawaii residents can receive rebates of up to $500 or 20% off the purchase price of a new electric bicycle or moped. Eligibility is limited to individuals who don't own cars, participate in low-income assistance programs, or are enrolled as students.
Illinois
The Illinois Electric Vehicle Rebate Program offers $4,000 discounts on new electric vehicles and $1,500 off electric motorcycles. The program operates in cycles, with the most recent period running from November 2023 through January 2024.
Maine
In 2023, Maine's governor signed legislation establishing electric bicycle rebates for income-qualified residents. The program is still being implemented statewide. However, South Portland's Maine Electrify Everything Program already provides $300 rebates for electric bicycles and $500 for cargo models.
Maryland
Maryland is in the early stages of implementing an electric bicycle rebate program, with legislation requiring an annual $500,000 budget allocation beginning in fiscal year 2025. The state also offers the Clean Vehicle Credit of up to $7,500 for eligible electric vehicles.
Massachusetts
The Massachusetts MOR-EV program expanded to include electric bicycles in January 2025. Residents can now claim point-of-sale rebates of $500 (standard) or $750 (low-income) when purchasing qualifying models.
Michigan
Legislation introduced in May 2022 would provide Michigan residents with up to 90% off electric bicycle purchases (maximum $500, or $1,250 for low-income residents). While this bill progresses, the city of Ann Arbor has partnered with local dealers to offer $100 discounts on select models.
Minnesota
Minnesota's new ebike incentive program launched in March 2024 with $4 million in funding. The program offers tiered rebates based on income: low-income residents (under $50,000 annually) receive 75% off (up to $1,500), while all other eligible residents get 50% off (up to $1,000).
Nevada
NV Energy provides a $500 credit for residential customers who purchase Level 2 EV charging stations. Low-income customers (those with household incomes below 200% of the federal poverty level) can receive a $2,500 rebate when buying new or used electric vehicles.
Oregon
Oregon's Ebike Rebate Program launched in 2025, offering $500 for standard models and $1,500 for cargo/adaptive ebikes (restricted to low-income residents). Eugene's utility (EWEB) has increased its rebates to $500. The state's Clean Vehicle and Charge Ahead Rebate programs also provide substantial savings on eligible electric vehicles.
Rhode Island
The Erika Niedowski Memorial Electric Bicycle Rebate provides Rhode Island residents with a 30% discount (up to $350) on standard or cargo ebikes. Low-income applicants can receive 75% off (up to $750).
Vermont
Vermont offers a $400 credit for certified electric bicycles for residents with incomes below $60,000 (individual), $75,000 (head of household), or $90,000 (joint filing). E-cargo bikes qualify for an $800 credit. Burlington residents can receive up to $200 for purchasing from local shops, while Vermont Public Power Supply Authority (VPPSA) customers are eligible for $100 rebates.
Colchester and surrounding areas have additional programs available.
Washington D.C.
The D.C. Ebike Incentive Program began accepting applications in April 2024. Low-income residents can receive up to $2,000 for cargo models and $1,500 for standard ebikes, while higher-income applicants qualify for $1,000 and $750 rebates, respectively.
Texas
A 2025 pilot program offers $500 rebates for electric bicycles purchased in non-attainment air quality zones, specifically in the Houston and Dallas metropolitan areas.
Arizona
The Clean Commute Act provides Arizona residents with $750 rebates for standard electric bicycles and $1,000 for cargo models, subject to income restrictions.
Conclusion
Electric bicycle incentive programs continue to expand across the United States, making eco-friendly transportation more accessible to a wider population. If your state doesn't currently offer rebates, the nationwide Electric Bicycle Incentive Kickstart For The Environment Act may provide future savings opportunities if passed.
Beyond financial incentives, electric bicycles offer numerous benefits, including improved fitness through regular cycling, reduced traffic congestion, lower environmental impact, and the joy of discovering your community from a new perspective.
FAQs
What types of electric bicycles qualify for tax credits?
To qualify, an electric bicycle must have a motor under 750 watts, be classified as class 1, 2, or 3, include functional pedals, and meet UL 2849 certification standards.
How much can I save with the federal Ebike Act consumer tax credit?
If passed, the federal program would offer a 30% refundable tax credit up to $1,500 for ebikes priced under $8,000.
How often can I claim an ebike tax credit?
Individual taxpayers can typically claim the credit once every three years, while married couples filing jointly may be able to claim it twice in the same period.
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