What We Know

Back in May 2023, the Minnesota State Legislature passed the 2023 Minnesota Omnibus Transportation Policy and Finance bill, which includes the creation of a new Electric-Assisted Bicycle Rebate Program. We know that the maximum rebate you can qualify for is 75% of the total value of the bike up to $1500, and the amount of the rebate will be reduced based on your adjusted gross income. You will have to apply for a rebate certificate through the Minnesota Department of Revenue, and then provide your rebate certificate to the retailer at the time of purchase.

Now Bikes is keeping a close eye on the development of the program. Once the State begins taking applications we will share details on how to apply.

.

What are my chances of getting the rebate? 

The published program budget is $2,000,000, and 40% of those funds will be allocated to lower income applicants. Applications will be processed in the order in which they are received. After 10,000 applications are submitted the state will stop accepting new applicants. For the first round of rebate certificates, the state will approve 1,300 applicants. Those who receive a rebate certificate on July 1st will have two months to use their rebate, or it will be forfeit. After the two month period, the state will begin allocating rebate certificates to the remaining applicants from the pool of 10,000. For context, Minnesotans purchased an estimated 30,000 e-bikes in 2023. As such, we anticipate that funds will run out and not everyone who applies will receive a rebate certificate. 

Will I qualify for an e-bike rebate in the Minnesota program?   

Yes, you will qualify, but funds will likely run out. If funds were infinite, every individual would qualify for some rebate amount. To combat this and to ensure that funds are available for lower income filers, the program has reserved 40 percent of funding for people earning less than the state's median income of $41,000 per filer. To understand how much you may qualify for please see examples at the end of the page.

What are the requirements to apply?

• Be at least 15 years old at the time of application
• Be a Minnesota resident in the current year and previous year
• Not have been claimed as a dependent in the previous tax year

Program specifics outlined in the law

• Class 1, 2, and 3 Electric-assisted bicycles, as defined in Minnesota Statutes 169.011 Subdivisions 15a, 15b, and 15c purchased from an eligible retailer will qualify
• Retailers must apply to be certified
• Persons eligible to apply must be a resident individual or married filing jointly taxpayer 15 years or older that is not claimed as a dependent on someone else’s return.
• The maximum rebate of 75% of the value of the bicycle up to $1,500
• The amount of the rebate certificate is reduced 1% for each $4,000 the applicant makes over $25,000 or $50,000 for those married filing jointly until it reaches 50%, or $125,000 for individuals and $150,000 for those who are married and file jointly. You are still eligible for a 50% credit (up to $1500) if you make more than that.
• A process for transferring the certificate to a qualified retailer at the time of sale will be established.
• The credit is only good for 30 days and you cannot apply for more that one credit certificate.
• Retailers are the ones that file with the Department of Revenue for the credit refund.
• The program is not retroactive. 
• The program only covers new e-bikes, not conversion kits.

.

Additional Resources

The exact bill language can be found starting on Line 156.1 of HF 2887.

For the latest info from the State of Minnesota Department of Revenue please click here.

Examples

To help makes sense of how much you may qualify for, let's break down a few examples:

• Your individual income is $24,000 and you want to purchase a bike valued at $2000. You will receive a rebate for 75% of the value of the bike up to $1500. In this instance you would receive a rebate of $1500, requiring you to pay $500 out of pocket for your new E-bike.
• Your individual income is $125,000 and you want to purchase a bike valued at $2000. You will receive a rebate for 50% of the value of the bike up to $1500. In this instance you would receive a rebate of $1000, requiring you to pay $1000 out of pocket for your new E-bike.
  
  
• Your income is $24,000 and you want to purchase a bike valued at $1200. You will receive a rebate for 75% of the value of the bike up to $1500. In this instance you would receive a rebate of $800, requiring you to pay $400 out of pocket for your new E-bike.
• Your income is $125,000 and you want to purchase a bike valued at $1200. You will receive a rebate for 50% of the value of the bike up to $1500. In this instance you would receive a rebate of $600, requiring you to pay $600 out of pocket for your new E-bike.
  
  
• Your individual income is $24,000 and you want to purchase a bike valued at $4000. You will receive a rebate for 75% of the value of the bike up to $1500. In this instance you would receive a rebate of $1500, requiring you to pay $2500 out of pocket for your new E-bike.
• Your individual income is $125,000 and you want to purchase a bike valued at $4000. You will receive a rebate for 50% of the value of the bike up to $1500. In this instance you would receive a rebate of $1500, requiring you to pay $2500 out of pocket for your new E-bike.