Last year, the state Legislature passed the Omnibus Transportation Finance and Policy bill, which included an electric-assisted bicycle rebate program.
Starting this year, the program will give rebate certificates* to Minnesota citizens for the purchase of new e-bikes. The program will not cover previously purchased e-bikes.
Interested in getting an e-bike in 2024? Here’s everything you need to know about Minnesota’s e-bike tax rebate.
How do I apply for the rebate?
Applications for the rebates will be handled through the Minnesota Department of Revenue. The exact application process is yet to be determined, but it will require proof of the applicant’s adjusted gross income from the previous year.
The application process for the program is in the process of being built, but Minnesotans will be able to apply in early summer, according to the Department of Revenue.
Am I eligible for the rebate?
All Minnesota residents are eligible for the rebate except for:
- Those under 15 years old.
- Those claimed as a dependent on someone else’s tax return.
- People who pay Minnesota taxes but who aren’t Minnesota residents are not eligible.*
How much money am I eligible to receive?
The maximum rebate is 75% of the value of the cost of an e-bike up to $1,500. Minnesotans earning $25,000 a year or less — or $50,000 for a married taxpayer who filed a joint return — are eligible for the maximum rebate. Income is based on the applicant’s adjusted gross income from the year prior to applying.
The more money applicants make beyond that threshold, the smaller their rebate will be. The rebate is reduced by one percentage point for each $4,000 an applicant earns above $25,000 or $50,000. But the reductions will stop when the rebate certificate reaches 50 percent of the cost of an e-bike.
The state has $2 million to distribute for each year of the rebate program.
How do I redeem the rebate certificate at a bike shop?
The rebate certificate must be used at bike shops that have applied with the Minnesota Department of Revenue to be included as an eligible retailer. When the certificate is presented at participating shops, the retailer will reduce the price of the e-bike according to the amount on the certificate.
Applicants are responsible for paying the difference between the rebate certificate and the cost of the e-bike, which vary widely, and can range from $1,000 to $10,000.
Rebate certificates will expire two months after the date they are issued. The certificates cannot be deposited into personal bank accounts, and must be redeemed at participating bike shops.
The application process for bike shops to participate in the program is still underway, but the Department of Revenue will have a list of participating retailers on its website once complete.
How long will the program last?
The program will expire on June 30, 2026. The state is allocating $2 million in rebates for each year of the program.
Where can I go for more information and updates?
More information can be found on the Minnesota Department of Revenue’s website.
Minnesotans interested in applying for the rebate can sign up for email updates here.
E-bike retailers interested in participating in the program can sign up for email updates here.
CORRECTION: A previous version of this story misidentified the rebate certificate as a check, and said all Minnesota taxpayers are eligible for the rebate. People who pay Minnesota taxes but who are not residents of the state are not eligible.
