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E-Bike Tax Credit

E-bikes Tax Credit

Making e-bikes more affordable for all Coloradans

 

Funding Overview

Type: Upfront discount (tax credit for participating retailers offering discount)
Eligibility: Anyone who lives in Colorado purchasing a qualified e-bike at participating retailer
Amount: $450 discount per e-bike (limited to one discount a year per resident); $500 tax credit for retailer

Coloradans can get $450 off a qualified e-bike purchase at a participating retailer (limited to one discount per calendar year). Reach out to your local e-bike retailer to confirm whether they are participating and offering the discount.

Note: The purchaser is responsible for paying the full sales tax on the e-bike, even if the discount exceeds the bike’s price.

Discount Eligibility

Proof of a physical Colorado address is required at the time of purchase. All documents must be dated within three months of the e-bike date of purchase.

Acceptable proof of address documents include:

  • Current valid Colorado Driver’s License or ID
  • Computer-generated bill (utility, credit card, doctor, hospital, etc.)
  • Printed bank statement
  • Pre-printed pay stub (from a period within the last 3 months)
  • First-class mail (from a government agency or court)
  • Current homeowners, renter's, or motor vehicle insurance policy
  • Mortgage, lease, or rental contract
  • Transcript or report card from an accredited school
  • Motor vehicle registration
  • USPS Change of Address Form CNL107
  • DD Form 214

If you are unhoused in Colorado and receiving services from a government agency or non-profit organization, a dated letter on the organization's letterhead stating your situation may be accepted in place of one of the above documents.

Eligible E-Bikes

Not all e-bikes on the market are eligible for the e-bike tax credit discount. Please check with the retailer to confirm the e-bike you are purchasing meets the following requirements to qualify for the discount:

  • Must meet independent UL certification standards. The e-bike must be certified to UL 2849, UL 2271, or EN 15194. E-Bikes that are UL-certified typically have a UL certification logo on the bike battery.
  • Must be a new e-bike.
  • Must have an electric motor that is 750 watts or less and must not be gasoline-powered.
  • Must have two or three wheels and fully operable pedals.
  • May be any class of e-bike (per the State of Colorado e-bike definition). Includes an electrical assisted bicycle with a motor that provides assistance:
    • Class 1: only when the rider is pedaling and ceases to provide assistance when the bicycle reaches a speed of 20 mph.
    • Class 2: regardless of whether the rider is pedaling but ceases to provide assistance when the bicycle reaches a speed of 20 mph.
    • Class 3: only when the rider is pedaling and ceases to provide assistance when the bicycle reaches a speed of 28 mph.
  • May be an adaptive e-bike.
  • No minimum purchase price; no maximum purchase price

Participating E-Bike Retailers

Use the map and/or the list of participating retailers below to find an e-bike retailer near you. Please note that the list is self-reported and is not comprehensive. If a retailer is not listed, please check with the retailer to see if they are participating and offering the $450 discount. We will continue to add retailers to this list as retailers register to participate and self-report their participation.

See list of participating retailers

Become a Participating Retailer

Eligible retailers must:

  • Sell qualified e-bikes
  • Hold a State of Colorado sales tax license
  • Have filed, in a timely manner, a monthly sales tax return showing a tax liability for at least 12 months
  • Have paid the taxes due on the monthly sales tax return

Eligible retailers must register with the Department of Revenue (DOR) via their Revenue Online account. More information about how to claim the e-bike tax credit is also available on the DOR website. Visit DOR e-bike tax credit webpage for more information

Once registered with DOR, please complete the form below to join the Colorado Energy Office (CEO) published list of participating retailers.
Public participating retailer list sign-up form

Retailers will collect an affidavit form (to be supplied by the Department of Revenue) from each customer receiving the discount and will submit the affidavits with a quarterly report to the Department of Revenue. 

Additional Resources for Retailers

 

Financing

In the first year of the program (2024), participating retailers will be unable to collect advanced payments of the credit. CEO recognizes that this may present a hardship for some retailers and has reached out to lenders about possible loan options for the first year. 

The Colorado Enterprise Fund (CEF) is available for e-bike retailers needing financing support for their businesses. CEF offers fair, flexible, fixed rate financing to Colorado businesses who would not otherwise qualify for traditional bank financing.
Learn more about the Colorado Enterprise Fund

Please reach out to Sarah Thorne, sarah.thorne@state.co.us, to connect with CEF.
 

Department of Revenue

Retailers can find the latest information about registering to participate, filing income taxes, quarterly reporting, and reimbursement on the DOR webpage linked below. 
Go to DOR e-bike tax credit webpage