Minnesota Senate transportation budget

Rebate Summary

Minnesotans purchasing electric-assisted bikes could get a tax credit worth up to $1,500 under an incentive added to the Minnesota Senate transportation budget. The credits in state Sen. Omar Fateh’s amendment would allow a resident who buys from an in-state retailer to claim a credit equal to 75% of the purchase price of an e-bike plus accessories like helmets, locks, bags and reflective clothing. A couple filing their taxes jointly could each take advantage of the credit. The value of the credit steps down at incomes higher than $50,000 for a married couple, $25,000 for a single tax filer until it reaches 50%. To make sure the $2 million cap isn’t exceeded, bike buyers would have to send an application to the state Department of Revenue, which would distribute tax certificates on a first-come, first-served basis. 40% of the credits would go to buyers at middle and low-incomes.