The Colorado E-Bike Tax Credit, Explained

How it works

• Colorado gives qualified retailers an income tax credit for each qualifying new e-bike they sell to a Colorado resident. The retailer must pass a discount to the buyer at the time of sale. (Colorado Dept. of Revenue)
• For 2026 the discount is $225. The retailer's credit is $250, and the retailer may keep a $25 administrative fee. (Colorado Dept. of Revenue, Colorado Energy Office)
• The discount must show as its own line on your receipt. (Colorado Dept. of Revenue)
• You get one discount per calendar year. (Colorado Energy Office)
• You still pay sales tax on the full price of the bike. (Colorado Energy Office)

Good to know

• The discount only comes from a participating retailer, so ask any shop whether it takes part. (Colorado Energy Office)
• The state's list of participating retailers is self-reported and may not be complete. (Colorado Energy Office)
• The credit cannot be used on a used e-bike. It applies to new qualifying e-bikes only. (Colorado Energy Office)
• The state says the discount and the income-qualified rebate can be used on the same bike at a retailer that takes part in both. (Colorado Energy Office, Colorado Energy Office)

You

• You live in Colorado and can show proof of a physical Colorado address at purchase. (Colorado Energy Office)
• Proof must be dated within three months of the purchase. A current Colorado driver license or ID, a computer-generated bill, a printed bank statement, a lease or mortgage, an insurance policy, vehicle registration and other documents are on the state's list. (Colorado Energy Office)
• You have not already used the discount this calendar year. (Colorado Energy Office)
• You sign the state's DR 0514 purchaser affidavit. (DR 0514 form, Colorado Dept. of Revenue)

The e-bike

• New, not used. (Colorado Energy Office)
• Certified to UL 2849 or EN 15194. UL-certified bikes carry a UL logo on the bike or battery. (Colorado Energy Office, UL Solutions)
• Motor of 750 watts or less, not gasoline powered, two or three wheels, and working pedals. (Colorado Energy Office)
• Class 1, 2 or 3. The state says a bike with a mode that goes past the three classes (sometimes sold as an "off-road" mode) does not count as an e-bike under its definition, as of August 2025. (Colorado Energy Office)
• No minimum or maximum price. The state warns that low-cost bikes may not meet safety standards. (Colorado Energy Office)

Amounts and dates

• $1,000 standard rebate, plus $300 for an e-cargo bike and $300 for an adaptive e-bike. (Colorado Energy Office)
• Registration windows: Aug 24 to 31, 2026 (closed), Oct 19 to 26, 2026 (open now), Jan 11 to 18, 2027, and Mar 15 to 22, 2027. Each opens at 11:00 AM MT on the first day and closes at 12:00 PM MT on the last. (Colorado Energy Office)
• Selected registrants are emailed the evening the window closes, then have one week to upload proof of address and income. (Colorado Energy Office)
• Once approved, redeem within 60 calendar days at a participating retailer. (Colorado Energy Office)
• Only one lifetime rebate per person, and it is not retroactive. You must buy after you receive the rebate. (Colorado Energy Office)

Who qualifies

• Colorado resident, age 18 or older. (Colorado Energy Office)
• Household income below 80 percent of your county's area median income, or enrollment in a listed assistance program such as SNAP, Medicaid, WIC, LEAP, SSI or RTD LiVE. (Colorado Energy Office)
• A standard e-bike must cost $5,000 or less, and full-suspension mountain e-bikes do not qualify. E-cargo and adaptive bikes have no price cap. (Colorado Energy Office)
• Rebates do not cover sales tax, shipping or assembly. (Colorado Energy Office)
• Questions about your registration: 833-933-9602 or ebikescolorado@aptim.com. (Colorado Energy Office)

Is the discount still $450?

No. It dropped to $225 for 2026. It was $450 in 2024 and 2025. (Colorado Dept. of Revenue, CBS Colorado)

Is there an income limit on the $225?

No. Any Colorado resident buying a qualifying new e-bike at a participating retailer can use it once per calendar year. Only the separate state rebate has an income test. (Colorado Energy Office, Colorado Energy Office)

Do I file anything on my tax return?

The state describes the credit as going to the retailer, who gives you the discount at the sale. You sign the DR 0514 affidavit at purchase. (Colorado Dept. of Revenue, DR 0514 form) Ask your tax preparer if you have questions about your own return.

Do I pay sales tax on the discounted price?

No. You pay sales tax on the full price before the discount. (Colorado Energy Office)

Can I use it on a used e-bike?

No. The e-bike must be new. (Colorado Energy Office)

Can I buy online and still get it?

The discount is given by a participating retailer at the point of sale, and the retailer must collect your affidavit and check your proof of address. (Colorado Energy Office, DR 0514 form) Ask any online seller whether it participates before you order.

Can I use the credit and the state rebate together?

Yes, at a retailer that takes part in both programs. (Colorado Energy Office, Colorado Energy Office)

Does the bike need a UL label?

It must be certified to UL 2849 or EN 15194. (Colorado Energy Office) See our safe e-bike buying guide and our safety notices before you buy.

Will the amount change in 2027?

It can. The law lets the amount fall if state revenue forecasts are weak. (Legislative fiscal note) We have not found a 2027 amount, so check the state pages. (Colorado Dept. of Revenue)

Can I test ride first?

Yes. Book a free test ride at our Erie shop on our Calendly page, or call or text Longmont at 720-712-7666.