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New State Tax Rebates Could Boost E-Bike Sales Next Year

3:38 PM | Wednesday, May 31, 2023

Pam Sayler said her store Trailhead Cycling started selling electric bikes about 10 years ago at its Champlin location.

“The exponential growth has been huge,” said Sayler at the Plymouth location of the store. “It’s our largest category right now, as far as dollars.”

Sayler said customers often are looking for new–more environmentally-friendly–ways to get around town or to downsize. The newest models have intricate smart technology to pair with phones to provide real-time data and allow riders to know which gear to use given the terrain. They also have batteries powerful enough to last for as far as 70 miles between charges.

e-bikes tax credit Trailhead Cycling Plymouth

Customers who buy e-bikes can qualify for tax credits under a new state law that takes affect in 2024.

“[E-bikes are] easier to operate, less effort to ride. E-bikes flatten the hills and take the wind away, and also if you’re running errands you might be carrying a certain amount of weight with you or pulling a trailer, and the e-bike makes it that much easier for you to ride,” said Sayler, who rides her own e-bike to the library or to the grocery store.

Now, Minnesota lawmakers have added a possible incentive to those who wish to purchase electronic bikes: tax credits.  According to legislation passed this session, someone who makes less than $50,000 a year can qualify for up to $1,500 in tax rebates when they buy an e-bike from a Minnesota retailer. The amount of the rebate gets progressively lower the more money the customer earns.

But Sayler said it’s important to do research before heading out to buy an e-bike because there are a list of stipulations, including the timeframe. It doesn’t start for more than another year.

“There is verbiage in this bill that indicates this program won’t start until July 2024,” said Sayler. “There’s a limited amount of dollars available, and once those dollars are used up, either before July 2026 or the dollars are used up. That’s when the program expires.”

She also cautioned potential customers that this doesn’t equal a discount on the price of an e-bike, which can be anywhere between about $2,000 and $5,000.

“At this point, the rebate is in the form of a credit from the state of Minnesota,” she said. “You do have to apply for a certificate to show that you’re eligible for a rebate, and you have to submit a legitimate invoice or receipt to show that you purchased the bike and you’re available for the rebate.”

Still, she expects this will have a big impact on the sales of e-bikes going forward.

“We’re going to do everything we can to get ourselves ready for this event,” she said. 

Sponsored
Rusty Ray, reporting

Plymouth | Twin Cities

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