Bike Shops Prepare for Minnesota’s E-Bike Rebate Program
Minnesotans are getting closer to being able to purchase an e-bike at a discounted price. The rebate program kicks off this summer, but its rollout hasn’t been entirely smooth for businesses.
Over the past few years, bike shops have cashed in on the popularity of a faster ride.
“We’ve been selling electric bikes for 11 years here at Trailhead, but the past four years we’ve seen great exponential growth in the popularity of electric bikes,” said Pam Sayler, owner of Trailhead Cycling.
Trailhead Cycling sells a wide variety of e-bikes.
Trailhead has two locations– one in Champlin, and one just off the Luce Line trail in Plymouth.
Sayler said there are many benefits to e-bikes. She says they can help people travel farther and see more of the communities they live in.
“They’re popular, they’re fun, they’re easy to ride and easy to operate,” Sayler said. “It really flattens the hills and takes the wind away so everyone can have a great ride.”
Some families have replaced cars with e-bikes, citing the lower cost and lesser environmental impact. Still, those bikes can be pricey.
Sayler said a good, regulated e-bike can cost thousands of dollars.
Sen. Omar Fateh, DFL-Minneapolis, authored an e-bike rebate bill.
He told CCX News that his goal for the bill is to make biking a more accessible activity for everyone, regardless of income level. Fateh also cited the environmental impact.
“If people are able to take more trips by bike instead of car, that substantially reduces air pollution for the entire community,” Fateh said in a text. “We already have have major subsidies to incentivize electric vehicles, but I believe we can accomplish more pollution reduction per dollar by incentivizing e-bikes as well.”
A Regulated Initiative
The incentive does have some stipulations, all listed on the Department of Revenue’s page. It’s capped at $2 million per year for 2024 and 2025, so not everyone who applies will get one. You also have to be at least 15 years old, a Minnesota resident for the past two years, and not been claimed as a dependent in the previous tax year.
Rebate recipients will get a certificate valued at 50-75 percent of the value of eligible e-bikes and supplies. That percentage depends on how much the applicant makes.
E-nikes come at a higher cost than non-electric bikes.
“There’s only $1,500 available per person, if you’re eligible,” Sayler said. “The more income you make, the less percentage you get of that $1,500.”
The program was announced about a year ago as a part of the omnibus transportation bill. Specifics are available in the text on HF2887, on page 159.
Sayler said she’s excited to see more people have access to bikes. But, since its announcement last spring, bike sellers, including Sayler, have actually seen a drop in business.
“What that’s done for us as a business is it has slowed electric bike sales,” Sayler said. “Because people are wondering: Are they going to get a rebate or not?”
Looking Ahead
Go time is soon. Businesses that have sold e-bikes for over six months can apply to be an approved retailer on May 1.
Individuals then have the chance to apply for the rebate starting at 11 a.m. on June 5. Rebate certificates will be available on a first-come, first-served basis. Sayler said if you’re interested and qualify, to think ahead.
“Here’s what I say you should do: go to your local bike shop today, test ride an e-bike, make a note and communicate ahead of time,” Sayler said.
Text from the bill says eligible bikes are heavily regulated.
Bikemn.org breaks down the e-bike program on its website. Only new e-bikes are eligible for rebates, and the credit is only good for 30 days. It’s only applicable to what they call an “electric-assisted bicycle” and “qualifying accessories,” including a bike helmet, lights, lock, a rack, a basket, bag or backpack, fenders or electric clothing.
Certificates will be regulated, too. Shops are responsible for submitting certificates to the state.
Though business for electric bikes has slowed over the past year, Sayler anticipates that it will pick up with the rebate program — but only for a limited time.
“I think it’s going to be crazy for about three weeks, and then it will be done,” Sayler said.
