Colorado’s E Bike Rebate Program Is So Popular That It Had To Be Suspended

Regardless of the jokes around Colorado's laid-back culture, the state has shown progressive actions in various areas, particularly in its efforts to improve air quality and enhance low-emission transportation, largely attributed to broad e-bike incentives. Last year, the state legislature approved SB22-193, known as "Air Quality Improvement Investments," which set aside $12 million for a fund aimed at "community access to electric bicycles". This legislation acknowledges transportation as the primary source of greenhouse gas pollutants in the state, further promoting the use of e-bikes to lower these emissions, particularly among low and moderate-income households.

While $12 million is a relatively small amount compared to the entire budget of $40 billion of Colorado, it is still noteworthy. Managed by the Colorado Energy Office, it was declared an overwhelming success, outperforming initial expectations and leading to high requests for rebate, especially from lower-income households that could apply for a higher-value rebate. The program was so popular it burned through its allocated budget within months, leading to a suspension until more funds can be diverted for a new batch of rebate applications in February 2024.

The program has facilitated around 4500 residents to acquire an emission-free vehicle who formerly couldn't afford one. Rebates have been redeemed by Coloradans across 54 counties, amounting to savings of around $5,417,300. Remarkably, 90% of those who took advantage of a rebate qualified as low income.

In addition to this prosperous e-bike rebate initiative, Colorado will introduce an e-bike tax credit from April 1, 2024 to provide all citizens with a $450 discount on eligible e-bike purchases at the point of sale until 2032.

Although these incentives only apply to a small portion of electric micro-mobility options relative to the state's millions of gas-powered vehicles, these programs can influence properties such as motivating other states to introduce similar incentive systems and saturating the roads with more electric two-wheelers, thereby making the e-mobility revolution more commonplace.