Tax credits for Coloradans buying an e-bike to drop on January 1

Tax credits for Coloradans buying an e-bike will be cut in half in the new year. The current program offers a $450 discount to Colorado residents who purchase an e-bike at participating stores. The discount will drop to $225 on January 1.

The change comes as e-bikes are becoming more popular in the state.

"We're seeing more and more e-bikes here in Colorado. For some people, it's really important the kind of the green aspect of less carbon emissions by riding an e-bike instead of driving your car. [For] others, it's just the plain fun factor," said Erik Knight, the owner of Boost Ebikes in Littleton.

"I love that it's a great, clean way to commute. I love that it's efficient. I love that it helps promote all our bike paths," said Heather Hodges, an e-bike rider.

To make e-bikes more affordable for Coloradans, the state launched the e-bike rebate program in 2023. In a statement, the Colorado Energy Office reports that more than 20,000 Coloradans have taken advantage of the tax credits.

"I looked into it and thought it was a great entryway to get into having an e-bike, making it affordable, launching into the first e-bike for the family," said Hodges.

Boost Ebikes maintains a large test-ride fleet at its Littleton store, allowing customers to try before they buy. They then place bike orders for customers in-store, by phone or by email. Knight said he has sold many bikes through the program.

"It has been really good for business. There is a lot of demand for e-bikes already, and then people find out that they can get $450 off that bike. We sell a lot of bikes for that reason," said Knight.

Now that the state's e-bike tax credit is dropping to $225, Knight is unsure of its impact on the business.

"We think there'll be some effect, especially early in the year, as people finish the year, making sure to take advantage of that. We're expecting a lull in January, February, which is kind of the slow season in the bike business anyway," said Knight, who added he's optimistic business will pick back up in the spring.

As the state is switching gears on the e-bike tax credit program, Hodges is taking advantage of the current credit. She previously bought an e-bike for herself and is now buying another for her husband.

"We're able to cash in on a really awesome e-bike, and we're excited to pick it up and get going," said Hodges. "So now we have two e-bikes in the family."

Many stores are helping customers take advantage of the larger discount. At Boost Ebikes, they're ready to take orders until 10 p.m. on New Year's Eve.

"Either way, a lot of states don't have anything at all, so we're happy to be part of the program and just trying to help Colorado residents," said Knight.

A statement from the Colorado Energy Office says, "We are committed to maintaining our momentum to achieve our clean energy goals, including by protecting Coloradans' access to cost-saving incentives. The state's clean energy tax credits were designed to adjust based on available revenues, as outlined in HB23-1272. The most current revenue forecast triggered the reduction, in alignment with the law. The credit continues to be available at the slightly reduced amount to Coloradans to purchase e-bikes. The program has been tremendously successful; at least 20,000 Coloradans have taken advantage to purchase clean, green and fun to ride e-bikes." 

For more information about the state's e-bike rebate program, click here.