Colorado launches nation's first e-bike tax credit, could strain bike shops
Colorado's new electric bicycle tax credit will save customers nearly $500 on one bike but could put a strain on bike retailers. Pedego Denver Manager Barry Slights is gearing up for an increase in business as Colorado launches the nation's first e-bike tax credit.
"With $450 off an e-bike, it's a really nice incentive for people to make that change," said Slights.
The state is at the forefront of what Slights calls a cultural shift in transportation.
"It's a different world to travel to work on two wheels instead of four wheels in a car," he said.
Since Monday, Coloradans can save $450 immediately on a new e-bike. But retailers will have to eat that cost until next year.
"It is a tax credit for us at the end of the tax year, so it is a little difficult for many businesses out there to absorb," said Slights.
While that may be a challenge for some smaller bike shops, Slights says most can't afford not to compete in the market.
"It's something we feel the benefits outweigh if you can stretch it," he said.
The good news for bike sellers is that starting next year, they'll get those repayments quarterly.
Any class of e-bike, and even trikes, are eligible for the credit if they meet certain certification standards and are 750 watts or less.
All customers need to take advantage of this discount is a Colorado driver's license or other proof of residency.
Slights expects a rush of bikers hoping to take advantage of the credit this weekend.
"We've had a few people come in when we tell them it's available from the first. It's 'shucks, we're coming back in a couple of days to take advantage of it,'" he said.
Click here to see a list of participating retailers.
Bike shops who haven't yet registered for the tax credit can sign up here. Once you have, you can add your business to the official list by filling out this form.
