2025 US Ebike Tax Credit & Rebate: Who Qualifies and How to Apply for Maximum Savings

Key Takeaway

The 2025 ebike tax credit and rebate programs let eligible US residents save significantly on new electric bike purchases. By meeting the requirements and following the right steps, you can combine federal and state incentives for maximum savings—sometimes totaling thousands of dollars.

Want to buy an e-bike? Government tax credits and local rebates can make it much more affordable. These programs can save you hundreds, sometimes even thousands, of dollars on a new electric bike. But figuring out the rules for who qualifies and how to apply is often confusing. We explain the steps to find the right programs and get the most savings.

Different Types of E-bike Incentives

Incentives generally fall into three categories, each working a bit differently to lower the cost of your new e-bike.

The Pending Federal E-BIKE Act

The most talked-about incentive is the federal Electric Bicycle Incentive Kickstart for the Environment (E-BIKE) Act. It has been reintroduced in Congress but has not passed into law as of early 2025.

If it passes, it would create a refundable tax credit of 30% of an e-bike's cost, with a maximum credit of $1,500 for bikes that cost less than $8,000. The proposal includes income limits for buyers and would allow you to claim the credit once every three years.

State & Local Programs: Your Best Bet for 2025 Savings

Since the federal act isn't law yet, your best opportunities for savings are at the state and local levels. These programs are active now and come in a few different forms:

• Point-of-Sale (POS) Vouchers: This is the most helpful type of incentive. You get an instant discount right at the cash register, so you don't have to pay the full price upfront. Programs in states like California and Colorado use this model.
• Post-Purchase Rebates: With this model, you pay the full price for the e-bike first. Then, you fill out paperwork and mail it in to get a check back from the program, which can take several weeks. Hawaii and Rhode Island have programs like this.
• Tax Credits: A tax credit reduces the amount of state taxes you owe at the end of the year. You claim this credit when you file your taxes, so the financial benefit is delayed.

Who Qualifies for E-bike Rebates? Here's the Checklist

Eligibility rules are strict and vary from place to place. You need to qualify, and the e-bike you want to buy also needs to meet the program's standards. Here's a breakdown of what to look for.

Are You Eligible?

• Residency: You must prove you live in the specific state, city, or utility service area that offers the rebate. A driver's license or utility bill is usually required.
• Income Level: The most generous programs are often designed for low- and moderate-income households. Each program sets its own income caps, so you must check the specific rules for your area to see if you qualify.

Is Your E-bike Eligible?

• Motor Power: The electric motor must be less than 750 watts. This is a nearly universal rule.
• Classification & Pedals: The bike must be a Class 1, 2, or 3 e-bike and have working pedals. This separates them from electric scooters or mopeds.
• Price Cap: Many programs have a maximum price for the e-bike. The proposed federal credit has an $8,000 cap, but some state programs have much lower limits, like $3,000 in Connecticut.
• Safety Certification (Crucial): The bike's electrical system and battery must be certified to a safety standard called UL 2849. This is a response to fire safety concerns with lithium-ion batteries and is now a mandatory rule in many programs. Look for a UL certification mark on the bike or in its official documents before buying.

How to Apply and Maximize Your E-bike Savings

Finding and applying for these savings takes a little effort, but following a few simple steps can make the process much smoother and help you get the biggest discount possible on your new ride.

Step 1: Gather Required Documents

Have these ready before you start:

• Proof of purchase (itemized receipt)
• Proof of residency (driver's license, utility bill)
• Proof of income (tax return, pay stub) if the program requires it
• E-bike details (make, model, certification)

Step 2: Apply for the Federal Tax Credit

The federal program is handled when you file your taxes.

• Buy a qualifying new e-bike from an approved retailer.
• Keep your receipt and all documentation.
• At tax time, complete the specific IRS form for the ebike tax credit (the IRS will provide a specific form; check their website for updates).
• Submit the form with your federal tax return. The credit will reduce the tax you owe or increase your refund, up to the program limit.

Step 3: Apply for State & Local Rebates

These programs vary by location.

• Check your state, city, or utility company's program website for rules and deadlines.
• Some rebates are instant discounts taken at the register. Others require you to apply for a reimbursement after you buy the ebike.
• Submit all required documents online or by mail as instructed.

Step 4: Track Deadlines and Funding

Many state and local programs have limited funds and work on a first-come, first-served basis. Apply as soon as you can so you don't miss out.

Step 5: Stack Your Savings

In some areas, you can combine incentives. For example, you might be able to use a state rebate and a separate rebate from your city on the same bike. Always check the rules of each program to see if stacking is allowed.

Spotlight on Top State E-bike Programs for 2025

While dozens of local programs exist, a few states have created large-scale initiatives that are great examples of what's available. Here are some of the top programs to be aware of in 2025.

California

The statewide program offers income-qualified residents vouchers worth up to $2,000 for a new standard, cargo, or adaptive e-bike. The program is very popular, and applications are accepted during limited windows, making it highly competitive.

Colorado

This state has a two-part system. All residents can get a $450 instant discount at participating retailers. On top of that, cities like Denver offer their own generous rebates, which can be over $1,000 for income-qualified buyers.

Connecticut

The state provides a standard voucher worth $500 for an e-bike costing less than $3,000. Low-income residents can get an additional $1,000, bringing the total potential savings to $1,500.

Hawaii

Residents can get a rebate off 20% of the cost of a new e-bike, up to $500. This program is specifically for students, people enrolled in low-income assistance programs, or residents who do not own a car.

Massachusetts

The MOR-EV program now includes e-bikes, providing residents with point-of-sale rebates of $500 for standard applicants and $750 for low-income applicants. The state also runs a separate lottery-based voucher program that offers up to $1,200.

Minnesota

This state launched a new program with a total of $2 million in funding. It offers a rebate covering 50% to 75% of the e-bike's cost, with a maximum value of $1,500, depending on the buyer's income.

New York

The state passed the "Ride Clean" Act, which offers up to $1,100 or 50% of the e-bike's cost for all New York State residents. In New York City, there is also a unique program that allows food delivery workers to trade in their old, unsafe e-bikes for new, certified ones.

Oregon

While a statewide bill is in the works, savings are currently found at the local level. In Eugene, the local utility (EWEB) offers a $300 rebate. In Bend, a program for Pacific Power customers provides a $1,800 rebate through a lottery system for qualified low-income households.

Rhode Island

The Erika Niedowski Memorial Electric Bicycle Rebate is open to all residents. The standard program gives a 30% discount up to $350. For low-income applicants, the rebate is much higher, covering 75% of the cost up to $750.

Texas

Texas does not have a statewide e-bike rebate. Some local programs exist, like Austin Energy's rebate (up to $600).

Vermont

The main statewide e-bike incentive program has run out of funding and is not expected to return in 2025. However, some local utilities still offer their own rebates. Green Mountain Power provides a $200 rebate.

Washington D.C.

The District runs a popular lottery-based program. Residents apply during a specific window in February, and winners are randomly selected to receive vouchers worth up to $1,500 for an e-bike and accessories like a lock and helmet.

Claim Your E-Bike Savings and Hit the Road

These government credits and local rebates make buying an e-bike much more affordable. It takes a bit of research and acting fast, but the payoff is often hundreds, or even thousands, of dollars back in your pocket. You get a great new ride that's fun, good for your health, and helps cut down on local traffic. It's a win for your wallet and your neighborhood.

FAQs about the US Ebike Tax Credit & Rebate

Q: Can I combine a federal tax credit with a state rebate?

In theory, yes. If the federal E-BIKE Act becomes law, you could likely use it along with a state or local rebate. Always check the rules of your local program, as some may have restrictions on combining offers.

Q: Do used e-bikes or conversion kits qualify for rebates?

Almost never. The vast majority of programs require you to purchase a new electric bike from an approved retailer. DIY conversion kits are typically not eligible for these incentives.

Q: How often can I get an e-bike rebate?

This depends on the program. The proposed federal credit could be claimed once every three years. State and local programs set their own rules, often limiting it to one or two rebates per household over the life of the program.

Q: What is the single most important thing to verify before buying?

Confirm that the e-bike you want is certified to the UL 2849 safety standard. With safety being a top concern, more and more programs are making this a mandatory requirement, and buying a non-certified bike is a common reason for being disqualified from a rebate.