Colorado’s E-Bike Tax Credit Decreases January 1, 2026

I’ve written previously about Colorado’s excellent e-bike tax credit.

Each Coloradan currently qualifies for a $450 tax credit (applied at the time of purchase) for eligible e-bikes. There are some minor restrictions: the bike has to be UL-certified, you must purchase from a registered Colorado e-bike retailer (which I understand, but is a bit of a bummer given the variety and lower prices you can find online), and a variety of specs have to be met on the bikes themselves. Note that you are still fully responsible for any sales tax (even if the price of the bike is completely covered by the $450, which isn’t likely but I suppose is possible).

Here’s a recent article that reviews a bunch of e-bikes at different price points (just keep in mind that some of them won’t be available at a rebate-eligible Colorado retailer). While you certainly can purchase more capable and expensive e-bikes, there are quite a few really good ones in the $1,000 range (which would be $550 about the instant tax credit). For example, this Lectric XP4 or XPLite2, either for $999 ($449 after instant tax credit). The credit is scheduled to decrease to $225 on January 1, 2026, so if you (or anyone in your family) is considering an e-bike you might want to purchase before the end of the year.

E-bikes are great just as bikes, but can also save you a tremendous amount of money if you have the opportunity to use them for your commute or other short car trips (at least on some days). This depends a lot on your commute (distance, safe streets/pathways, the weather any given day), but many folks will be able to replace a large percentage of their daily commutes with an e-bike. Which will not only save you money (likely more than paying for the e-bike in a year or two), but will also provide you some daily exercise and some time outdoors (which will be very beneficial to your health and, of course, to do your part to combat climate change). Again, every Colorado resident is eligible for this incentive, so it’s not a “one per address” kind of deal, but one per person, so multiple members of your family can purchase if it makes sense for you.