Colorado puts a new spin on e-bike incentives

By Francisco "A.J." Camacho | 04/16/2024 06:13 AM EDT

Every resident can get $450 off a new electric bicycle purchased at participating retailers through a tax credit rolled out this month.

A bicyclist rides and  electric bicycle moves through the streets of Manhattan.

An electric bicycle moves through the streets of Manhattan. Spencer Platt/Getty Images

Colorado this month began the first statewide electric bicycle tax credit in the U.S., the latest in a fast-growing list of government programs volunteering to pick up the bill for people’s new eco-friendly e-bikes.

The Centennial State’s tax credit gives each Coloradan $450 off an e-bike purchased from participating retailers, a tactical shift from existing state and local programs that offer a limited quantity of rebate vouchers to residents purchasing a new e-bike.

E-bikes have soared in popularity recently, even outselling electric vehicles by 23 percent in 2022. Similarly new is an accelerating bandwagon of e-bike incentives, which have been adopted in some form by dozens of entities across 11 states in the past two years.


The new tax credit keeps Colorado at the cutting edge of e-bike incentives, with the state’s capital, Denver, introducing the first major voucher program to the U.S. in 2022.