Tax credits of up to $1,500 for e-bikes added to Minnesota Senate transportation budget

Minnesotans who purchase electric bikes could get a tax credit of up to $1,500 under an incentive added to the Minnesota Senate transportation budget.

One prominent vendor of electric cargo bikes called the proposal generous, even though the initial program would be $2 million. A similar program in the city of Denver also limited how much the government would spend on rebates, and the money ran out in days.

“This is a big deal,” said Luke Breen, owner of Perennial Cycle in South Minneapolis. “This should attract a lot of people to electric bikes.”

The proposal, led by Sen. Omar Fateh, DFL-Minneapolis, is modeled after Denver’s program and the statewide incentive for e-bikes in Colorado. Credits in an unlock adjustment will allow a resident who buys from a retailer in the country to claim a loan equal to 75% of the purchase price of an e-bike plus accessories such as helmets, locks, bags and reflective apparel. Couples who file their taxes together can benefit from the credit.

The credit decreases on entry above $50,000 for a couple, and $25,000 for a single tax filer until it reaches 50%. To make sure they don’t exceed the $2 million cap, bike buyers will have to submit a request to the state department of revenue, which will distribute tax certificates on a first-come, first-served basis.

While the Denver program quickly reached its ceiling, it was statewide programme in Colorado starting this summer at $12 million.

Fatih said people in his area have approached him asking for incentives for e-bikes. “I’m glad they did. People just want to get more cars off the road and get people healthier,” Fatih said.

The bill includes provisions to ensure that 40% of credits go to middle- and low-income buyers. Fatah introduced his proposal as a separate bill with a House copy sponsored by Rep. Lucy Rihm, DFL-Chanhassen. Often, proper money bills are introduced and heard in committees but then incorporated into overall budget bills.

Rep. Frank Hornstein, Minneapolis DeVeller who chairs the House Transportation Committee, said the provision is not in the House version of the budget but said “This is definitely an item that we’ll talk about in the convention committee.

“I personally strongly support that,” Hornstein said.

Brin said his shop has moved toward selling premium e-bikes, particularly cargo bikes, in the $3,000 to $11,000 price range. But bike chain stores carry e-bikes that cost $1,800, so the credit is between $900 and $1,350 depending on the buyer’s income.

E-bikes are priced higher than bikes without electric assistance, but Brin said buyers tend to use them less for recreation and more for transportation. Price comparisons are not by bike but by car. He said there is a large market of parents with young children who use cargo bikes to replace a second car.

Brin said he doesn’t think the rebates will change the type of customer who’s shopping for an e-bike. He said it could convey to buyers who are already considering e-bikes but are on the fence. He said they are people who think, “I want to drive less and ride more.”

This makes bill central to Bundesliga football legislative topic To reduce emissions through financing and creating incentives for electric cars, buses, heat pumps and solar panels.

Endorsed by state bike groups like People for Bikes and the Bicycle Alliance of Minnesota, or BikeMN, the billing was aimed at the market Breen is its strongest: those who want to convert their daily commutes or commutes from cars to e. – bicycles.

Cited by BikeMN a Stady (funded in part by People for Bikes) found that if 15% of car trips were made by e-bike, emissions would drop by 12%. a North America Survey by professors at Portland State University found that 46% of commuting trips by e-bike have replaced car commutes.