Colorado residents will now be able to get a new credit that will help them save $450. Specifically, this new credit is available on eligible e-bike purchases. The Colorado e-bike tax credit is the nation’s first state-wide electric bicycle tax credit. Eligible buyers will get a $450 credit or discount on the purchase of eligible e-bikes from eligible retailers.
Colorado e-bike tax credit: what is it?
On Monday, Gov. Jared Polis and the Colorado Energy Office (CEO) announced the launch of the Colorado e-bike tax credit. The credit is available to people who live in Colorado and purchase an e-bike.
“This e-bike tax credit builds Colorado’s nation-leading work to reduce pollution and traffic, save people money and protect our environment,” Gov. Polis said in a statement.
Further, the governor noted that the credit will boost the demand for electric bikes as a healthy and sustainable zero-emission transportation option.
This tax credit is the result of HB23-1272 (sponsored by Senators Lisa Cutter and Steve Fenberg and Representatives Mike Weissman and Junie Joseph), which was approved by the state Legislature last year.
Along with launching the Colorado e-bike tax credit, Gov. Polis, the Colorado Energy Office and the Colorado Public Interest Research Group members declared April 1, 2024, as Colorado’s second annual E-Bike Day.
The $450 credit will help to significantly reduce the cost of e-bikes. E-bikes are available in different price ranges, starting from $600 and going up to $8,000. The majority of models, however, fall in the price range of $1,000 to $4,000.
Who will get the credit and how to get it
Eligible buyers will be able to benefit from the credit at the point-of-sale at participating retailers. It must be noted that buyers don’t need to submit an application to get the credit, and the credit or discount is available on the purchase of one e-bike from a participating retailer each calendar year.
Also, the buyer will be responsible for paying the full sales tax on the e-bike, even if the credit or discount is more than the e-bike’s price. The credit will be available through Dec. 31, 2032.
Buyers will have to provide proof of a physical Colorado address when purchasing the e-bike. Those who are unhoused in Colorado but receive services from a government agency or non-profit organization, need to get a dated letter on the organization’s letterhead. This letter will work as proof of a physical Colorado address.
It is important that buyers check with the retailer before purchasing an e-bike because the credit is not available at all retailers. Visit this link to view the list of participating retailers.
Not all e-bikes available on the market qualify for a credit. Thus, buyers need to confirm with the retailers whether or not the model of their choice qualifies for a credit.
Visit the E-Bike Tax Credit webpage for more information on the Colorado e-bike tax credit.
