Colorado E-Bike Rebate Program Temporarily Suspended Due to Unexpectedly High Demand

Colorado has suspended applications for its e-bike rebate program — at least temporarily. The reason? The program was incredibly popular, so much so that it ran out of its initial funding ahead of schedule.

The program started in August 2023, and interested customers could submit an application for a lottery selection for the rebates. As Colorado Public Radio reported, the program was allotted $6.6 million in funding, following an air quality law from 2022 known as SB22-193. The funding was expected to sustain the e-bike rebate program through at least February 2024.

Officials expected a 65% redemption rate, but by Dec. 21, 2023, 87% of the total available rebates had already been claimed. The low-income standard rebates, which offered a base of $1,100, had a 92% redemption rate, according to a press release from Colorado Energy Office (CEO).

As such, the program has suspended new applications until next month, when additional funding will be allocated for at least one additional round of application selections.

“Applications for the e-bike rebate program are temporarily paused until February 2024,” the rebate website currently reads. “CEO will reallocate $1.8 million in additional funding to support at least one additional round of statewide e-bike rebate applications in February.”

According to CEO, the program has led to discounts worth $5,417,300 and has helped 4,520 people in the state purchase electric bikes. The rebate program offered a base of $500 for moderate-income residents and $1,100 for low-income residents, plus additional incentives for additional equipment, e-cargo bikes and adaptive e-bikes.

“We are incredibly proud to have successfully implemented one of the largest e-bike rebate programs in the country,” Sarah Thorne, a senior program manager for CEO’s transportation team who runs the program, said in a press release. “E-bike adoption is at an all-time high in Colorado as a result of this program. More than 4,500 income-qualified Coloradans across the state who could not previously afford an e-bike now own an e-bike as an efficient, low-cost, zero-emission transportation option.”

About 400 residents have been waitlisted to receive the remaining rebates, including unused rebates from previous application rounds. Additionally, another $1.8 million in funds reallocated from the Local Government Community E-Bike Rebate Grant Program will allow CEO to take at least one more round of rebate applicants in February 2024.

CEO doesn’t expect to receive additional funding for the rebate program moving forward, but starting in April 2024, the state will implement a new tax credit program, offering “a $450 point-of-sale discount on a qualified e-bike purchase from an authorized e-bike retailer through 2032,” according to the office’s press release.

Aside from e-bikes, Colorado is also boosting other electric vehicles with increased state tax credits for EV and hybrid vehicle purchases. The updated tax credits increased to a $5,000 rebate for vehicles with up to an $80,000 MSRP in July 2023, and an additional tax credit of up to $2,500 for vehicles with an MSRP of $35,000 or less starting in 2024. According to CEO, customers have the option to assign their tax credit to a participating dealership, which will then deduct the credit amount from the vehicle purchase price at the time of purchase.