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Did the e-bike tax credit pass? It is the question all potential e-bike buyers will have in 2026, and the answer is more subtle than a simple yes or no. Although the federal E-BIKE Act is still pending approval by Congress with no final legislative success so far, the good news is that many state and local schemes are already in effect and provide significant savings.
What is most important here is that, regardless of whether the federal government approves it, you will still be able to save hundreds, or even thousands, of dollars on an e-bike purchase in 2026. The financial incentives to move to electricity have never been better, with upcoming federal legislation that would offer as much as $1,500 in tax credits and current state rebate programs that offer up to $500–$2,000.
Whether you're looking at your first e-bike or ready to buy a state-of-the-art model (like JasionBike with UL 2849-certified bikes), this guide covers what matters: the current federal situation, programs in action, eligibility, how to apply, and real-life examples of savings. We’ll break down how the ebike tax credit 2026 works and how to maximize your savings.
Part 1: What You Need to Know About the 2026 Federal Ebike Tax Credit
Here is everything you need to know regarding the Federal ebike tax credit 2026:
The E-BIKE Act: Current Status
The suggested federal tax credit for ebike purchases is based on the Electric Bicycle Incentive Kickstart for the Environment (E-BIKE) Act. Under the bill H.R. 1685, legislators proposed:
- A 30% refundable tax credit
- Maximum benefit of $1,500
- Eligible bikes priced under $8,000
- One credit per person every three years
The bill is still in Congress and has not yet been passed, as of February 2026. Nevertheless, its reintroduction and public support suggests increasing momentum for federal micro-mobility incentives.
How the Federal Tax Credit Works
If the federal ebike rebate becomes law, it would work as a refundable tax credit via the IRS in a straightforward way:
- Buy a qualifying new ebike.
- Keep documentation (receipt, model specs, certification proof).
- Claim 30% of the purchase price when filing your federal tax return.
- The IRS reduces your tax bill by the credit amount.
- If refundable and your tax owed is lower, you may receive the difference as a refund.
Example
- Buy an ebike for $2,000
- 30% credit = $600
- You reduce your tax bill by $600
If refundable, you could still receive money back even if your tax liability is low. This is why the proposal could be especially beneficial to middle- and low-income households.
Which Ebikes Qualify?
To be eligible for the federal e-bike tax credit, your e-bike must meet these technical requirements:
- Motor: 750 watts or less
- Classification: Class 1, Class 2, or Class 3
- Pedals: Functional pedals that assist with propulsion
- Safety (claimed as 2026 requirement): UL 2849 certification (CPSC effective January 1, 2026)
Part 2: 2026 State & Local Ebike Rebates: Where You Can Save Even More
The federal ebike tax credit for 2026 is just the beginning. Many states have already implemented their own e-bike rebate programs. In many places, you can combine state rebates with potential federal credits to maximize savings.
California
California leads with the California E-Bike Incentive Project, which offers point-of-sale vouchers that reduce your price at checkout.
Rebate amounts
- Standard e-bikes: $1,750 voucher
- Additional bonus: $250 for priority applicants
- Total potential: up to $2,000
Additional program
California's Clean Vehicle Rebate Project offers an extra $500 trade-in bonus if you're replacing a gas vehicle with an e-bike.
Application window
The next CEIP application period opens May 29, 2025, with applications processed first-come, first-served.
New 2026 requirement
As of January 1, 2026, California law requires e-bike batteries sold in the state to have UL 2849 certification.
Colorado
Colorado offers statewide and local rebate programs, though recent changes have reduced some incentive amounts.
Statewide tax credit
- $225 point-of-sale e-bike tax credit
- Available at participating retailers throughout Colorado
Income-based rebates
- Moderate-income earners (80–100% area median income): $750
- Low-income earners (below 80% area median income): $1,500
Local programs
Denver: reopened in 2024 with rebates of $1,200 for standard e-bikes and $1,700 for cargo models.
New York
New York's Ride Clean Act has passed the state Senate multiple times and includes instant rebates.
Rebate structure
50% of the purchase price, up to $1,100 maximum.
Additional NYC program
$500 trade-in rebate for gas vehicle replacement.
Current status
As of February 2026, the Ride Clean Act (S1047) has been reintroduced in the 2025–2026 legislative session and awaits Assembly approval after passing the Senate.
Washington D.C.
The nation's capital offers one of the most generous programs, especially for low-income residents purchasing cargo e-bikes.
Rebate amounts
- Low-income residents: Cargo e-bikes $2,000; Standard e-bikes $1,500
- Higher-income residents: Cargo e-bikes $1,000; Standard e-bikes $750
Program status
The D.C. E-Bike Incentive Program launched in April 2024 and continues to accept applications through the D.C. Department of Energy & Environment (DOEE).
Oregon
Oregon's program prioritizes low-income residents and cargo e-bikes.
Rebate amounts
- Low-income only: $1,500 for cargo/adaptive e-bikes
- Low-income only: $500 for standard e-bikes
Utility rebates
Eugene Water & Electric Board (EWEB) customers: additional $500 utility rebate.
Program status
Oregon's statewide e-bike rebate program launched in 2025 through the Oregon Department of Environmental Quality (DEQ).
Vermont
Vermont offers straightforward rebates with clear income caps.
Rebate amounts
- Standard e-bikes: $400
- Cargo e-bikes: $800
Income eligibility
- Individual filers: less than $60,000 annual income
- Head of household: less than $75,000 annual income
- Joint filers: less than $90,000 annual income
State Rebate Comparison
| State | Standard Rebate | Cargo / Premium | Income-Based Bonus | Point-of-Sale? |
|---|---|---|---|---|
| California | $1,750 | $1,750 | +$250 priority | Yes |
| Washington D.C. | $750–$1,500 | $1,000–$2,000 | Higher for low-income | Varies |
| Colorado | $225 tax credit | Same | $750–$1,500 rebates | Yes |
| Oregon | $500* | $1,500* | Low-income only | Varies |
| New York | Up to $1,100 | Same | 50% of price | Pending |
| Vermont | $400 | $800 | Income caps apply | No |
Part 3: Step-by-Step: How to Apply for the Federal Ebike Tax Credit
When the federal ebike rebate passes, claiming your tax credit will be straightforward. Here’s the process:
Step 1: Verify Your Ebike Qualifies
- Motor power ≤ 750 watts
- Classified as Class 1, 2, or 3
- Has functional pedals
- UL 2849 certified
- Purchase price under $8,000
All JasionBike models come with UL 2849 certification documentation and clearly labeled class specifications. Keep your purchase receipt and supporting documentation.
Step 2: Save Your Documentation
- Itemized receipt (make/model, price, date, motor wattage, class)
- UL 2849 certification proof
- Warranty documentation
- Product registration confirmation
Step 3: File with Your Tax Return
- Tax form: Complete IRS Form 8936 (or its updated equivalent for e-bikes)
- Filing timeline: Buy in 2026 → file taxes in April 2027 → receive the credit/refund
- Tax software: TurboTax and H&R Block typically add relevant sections once a credit becomes law
- Attach documentation: Include receipt and certification records as required
Step 4: Understand the Refund Timeline
If refundable, you may receive money back even if you owe $0. Typical IRS processing times:
- E-file: ~21 days for refund processing
- Paper file: ~6–8 weeks for refund processing
Step 5: State Rebates May Work Differently
Many state programs offer point-of-sale rebates and instant discounts at checkout.
Point-of-sale states
- California (CEIP vouchers)
- Colorado (tax credit applied at register)
- Massachusetts (MOR-EV instant rebate)
Post-purchase application states
- Vermont (apply before buying)
- Rhode Island (apply after purchase through state portal)
- Oregon (application-based for approved buyers)
Part 4: Common Misunderstandings & What NOT to Do
Even with clear guidelines, several misconceptions persist about ebike tax credit 2026:
The credit is automatic
You must file the tax credit yourself when doing your taxes; it doesn’t happen automatically. You’ll need to complete the relevant IRS form and keep receipts/certification records. Some state programs do give instant discounts at the store, but the federal credit requires filing.
Can claim it every year
Under the proposal, you can only claim the federal credit once every three years, not every year. If married filing jointly, both spouses could potentially claim (subject to rules).
Any ebike qualifies
Eligibility would be strict: motor ≤ 750W, Class 1/2/3, UL 2849 safety certification, and price under $8,000. Used e-bikes generally wouldn’t qualify for the federal credit.
I’ll get the full $1,500
The proposal is 30% of what you paid (not automatically $1,500). A $2,000 bike = $600; $3,500 = $1,050; only $5,000+ reaches the $1,500 cap.
I can’t stack federal + state credits
In many cases, you can combine state rebates with potential federal credits (where allowed). Example: California could reduce the price at checkout, and a federal credit could reduce next year’s tax bill.
Part 5: How Much You’ll Actually Save
Sara is a single professional in San Francisco with a 12-mile daily commute. She chooses the JasionBike EB7 ST. Here’s how her savings stack up:
- Federal tax credit: $1,399 × 30% = $419.70
- California CEIP voucher (instant at checkout): $1,750
- Total savings: $2,169.70
She applies for the CEIP voucher online and gets approved in two weeks. At the bike shop, if the voucher exceeds the bike’s price, she could pay $0 upfront. Next tax season, she files for the federal credit and may receive a refund, depending on final federal rules and her tax situation.
FAQ: Your 2026 Ebike Tax Credit Questions Answered
Did the e-bike tax credit pass in 2026?
As of February 2026, the federal E-BIKE Act remains under consideration in Congress and has not been signed into law.
How much is the ebike tax credit for 2026?
The proposal is 30% of the purchase price, up to $1,500, for eligible e-bikes under $8,000.
Can I use both federal and state ebike rebates?
In many locations, state/local rebates can be combined with federal incentives (if passed), but always confirm local program rules.
Do conversion kits qualify for the ebike tax credit?
Conversion kits may qualify under the proposal if they meet the same technical requirements as complete e-bikes.
When will I receive my federal ebike tax credit refund?
A federal credit would typically be claimed on your annual tax return (not an instant rebate).
Are used ebikes eligible for the tax credit?
No—under the proposal, the credit applies to new e-bikes, not used ones.
Unlock Your Rebate
Buying an e-bike in 2026 can be a smart move. Between state rebates and possible federal incentives, you may save hundreds or thousands. State programs can run out quickly, so check what’s available locally, confirm eligibility, and apply early.
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