All about e-bikes
E-bike tax credit
Electric bike tax credits and incentives have become a meaningful factor for both consumers and delivery riders deciding whether to buy an e-bike.
With federal proposals, state-level programs, and city incentives all in play, the landscape is complex but potentially valuable.
This guide covers what's currently available, who qualifies, and how to take advantage of these programs.
As of early 2025, there is no active federal e-bike tax credit in the United States. The E-BIKE Act, which would have provided a 30% tax credit (up to $1,500) on new e-bike purchases, was proposed but not passed into law.
This is an evolving situation. The proposal has broad bipartisan support and is expected to be reintroduced. If passed in its current form, it would apply to e-bikes priced under $8,000, with income limits for full credit eligibility.
For riders considering a purchase like the Storm-2, a 30% federal credit would translate to approximately $537 in savings on a $1,790 purchase — a meaningful reduction.
Monitor the IRS website and legislative updates for changes to federal policy.
Several states have moved ahead with their own programs. The details change frequently, so always verify current eligibility directly with the relevant state agency.
Colorado's e-bike incentive program offers point-of-sale rebates of up to $450 for qualifying models. Income-based tiers provide higher rebates (up to $1,400) for lower-income buyers. This is one of the most active state programs in the US.
California offers incentives through the Clean Vehicle Rebate Project (CVRP) and various Air Quality Management Districts. Some districts offer rebates specifically for low-income residents switching from cars to e-bikes for commuting. Check with your local AQMD for current availability.
New York State has proposed e-bike rebate programs, with some funding allocated through state clean transportation budgets. New York City has also partnered with Citi Bike and other organizations for subsidized e-bike access programs targeting low-income residents.
Vermont, Oregon, and Connecticut have offered or proposed rebate programs at various points. Programs come and go based on funding availability. Check your state's Department of Energy or transportation agency for the latest information.
Employers can potentially deduct e-bikes as a business expense under IRS Section 179, which allows immediate deduction of qualifying equipment purchases. For delivery companies or gig workers operating as a business entity, an e-bike used primarily for delivery may qualify as a deductible business asset.
Consult a tax professional to confirm eligibility for your specific situation before making purchasing decisions based on tax treatment.
Even without a tax credit, spreading the cost of an e-bike through financing or a rent-to-own plan can make a purchase more accessible.
Whizz offers monthly plans starting at $169/month for the Storm-2, which includes free maintenance and optional battery swapping. A rent-to-own plan is also available, which eventually converts your rental payments into ownership — without a large upfront payment.
