Cargo Bike Incentives
As electric and cargo bikes increase in popularity, state and local governments in the United States have begun offering incentives to riders who purchase e-bikes and cargo bikes. Congress is even considering a federal tax credit for certain e-bike purchases (learn more and get involved here).
Let’s cover the basics of how these state and federal incentives work and how to determine whether you may be eligible. Many of the programs offer post-purchase rebates, where you purchase the bike and then submit documentation to receive money back for your purchase. Other incentive programs offer discounts at the time of purchase. Some local governments offer loaner e-bikes or “ride-to-own” programs.
Some of the incentive plans are income-based, but others are available to anyone. Also, there may be different incentives based on the type and class of bike (for example, cargo bikes may receive a higher incentive; and some programs may exclude Class 3 e-bikes). Many of the incentive programs require purchasing from local bike shops, making these programs a win-win for riders and the local bike shops that serve our communities.
Portland State University keeps a spreadsheet detailing e-bike incentive programs throughout the U.S. and Canada. You can visit this resource to learn about all of the e-bike incentive programs that may be available in your state or city. We’ll highlight some examples below:
The California Air Resources Board is piloting an e-bike incentive program, with a soft launch in four communities beginning in June 2023. Learn more here.
The city of Austin doubled its rebate amounts for e-bikes in 2023. The rebate amount is based on the purchase price of the bike, with a maximum rebate of $600 for all riders. Certain low-income riders may be eligible for larger incentives of up to $1,300. To be eligible for the rebate program, riders must be Austin Energy customers. Learn more here.
The city of Denver offers incentives of $300 for purchase of an e-bike, or $500 for cargo bikes. Low-income riders may receive incentives of up to $1,200. Rebates are released incrementally and demand has been very high – the next release is currently scheduled for July 25 at 11 a.m. The city also has an e-bike lending library. Read about the incentives here, and the lending library at this link.
In New York City, the Equitable Commute Project offers e-bike loans for certain low-income riders. Learn more about eligibility and how the program works.
Cargo bikes are a significant investment, and these incentive programs can help all riders get going. And ultimately, e-bike ownership can reduce personal transportation costs such as gas, insurance, and parking. Some estimates suggest an e-bike can save you about $5,000 per year! Plus, riding a cargo bike can be a lot more fun than driving a car.
Have you taken advantage of e-bike incentives in your area? We’d love to hear about your experience!
