How Colorado's $225 E-Bike Discount Actually Works

Most people hear "tax credit" and picture paperwork, receipts in a shoebox, and a refund that shows up sometime next April.

Colorado's e-bike credit isn't that. It's a discount. You get it the day you buy the bike, at the register, and you don't have to do anything at tax time.

The short version
Colorado takes $225 off the price of a new e-bike for any state resident.

• No income limit
• No application
• No voucher to wait for
• Nothing to file on your tax return

You sign one short form at the shop, and the $225 comes off your total right there.
That's genuinely it. If you stop reading here, you know enough.

Why it's called a "tax credit" if you don't file anything
​This is the part that confuses everybody, so it's worth 30 seconds.
The credit isn't yours — it's the shop's. Colorado gives the retailer a tax credit for every qualifying e-bike sold, on the condition that the retailer knocks $225 off your price first.

So the money moves like this:

1. We take $225 off what you pay.
2. We tell the state we did it.
3. The state credits us back.
   
   

You're on step one. Steps two and three are our problem. You never see a form from the IRS, you never claim anything, and it doesn't affect your refund.

Who gets it
You qualify if you:

• Live in Colorado. Any county, any town. A driver's license or state ID is the easiest proof.
• Are buying for yourself, as a person — not through a business, nonprofit, or other entity.
• Haven't already used it this year. It's one per person, per calendar year.

There is no income test. There is no requirement to be car-free, or to be replacing a commute, or to prove anything about how you'll ride.
Two adults in the same house each get their own $225, as long as they're each buying their own bike and each signing their own form.

Which bikes count
Colorado wrote a specific definition. A qualifying e-bike is:

• New — not used, not a demo, not a former rental
• Class 1, 2, or 3 — pedal assist or throttle, topping out at 20 mph (Class 1 and 2) or 28 mph (Class 3)
• 750 watts or less, and not gas-powered
• Two or three wheels, with working pedals
• Safety certified to UL 2849, UL 2271, or EN 15194

Most bikes sold at a real shop clear all five without anyone thinking about it.
The one that actually disqualifies bikes is the last one. Safety certification is where a lot of cheap online-marketplace e-bikes fall down — no UL listing, no EN listing, no credit. If you're cross-shopping something you found on a marketplace site, check for that certification before you assume $225 comes off.

What buying one actually looks like
Step 1 — Pick the bike. We'll confirm it qualifies before you commit. Takes a second.
Step 2 — Sign the affidavit. It's a state form called the DR 0514. It asks your name, address, email, and some details about the bike. About three minutes. You can fill out your part online before you come in if you'd rather not do it standing at the counter.
Step 3 — Pay $225 less. It shows up as its own line on your receipt, so you can see exactly what came off.
Then you ride away. No follow-up, no mailing anything, no waiting.

The surprise at the register: sales tax
Nobody explains this one, and it catches people every time.
Colorado charges sales tax on the full price of the bike — before the $225 comes off.
So on a $2,000 e-bike, tax is calculated on $2,000, not on $1,775.
In Denver, where combined sales tax runs 9.15%, that's roughly $20 more than you'd expect if you assumed tax came off the discounted price.
It's not a fee any shop is adding. It's how the state wrote the rule, and it works the same everywhere in Colorado. We'd just rather you hear it now than at checkout.

What changed in 2026
Two things, and both are worth knowing if you researched this last year.
​
The amount is $225 now. It was $450 through the end of 2025 and dropped by half on January 1, 2026. If you find an article quoting $450, it's out of date.

But it's stable. $225 is the amount going forward — the program runs at this level through 2032. There's no deadline creeping up on you and no reason to rush a purchase you're not ready for. Buy the bike when you want the bike.

The form is new. Colorado updated the DR 0514 affidavit, and the new version has been required for every sale since September 1, 2026. It asks for a bit more than the old one: your email, the name of the salesperson who checked your ID, and the bike's model and serial number.
If a shop hands you the old version, that sale isn't compliant with the current rule. We switched to the new form on day one.
If you live in Denver, there's more
Denver County residents who meet the city's income limits can stack the city's $675 voucher on top of this $225 credit — $900 off one bike.
Two caveats:

• Denver's 2026 voucher rounds have all been released. A waiting list is the only way in until 2027.
• The Denver voucher can't be combined with the Colorado Energy Office's income-qualified rebate. The $225 state credit is the one that stacks with Denver. These two programs get mixed up constantly — they're separate things with separate rules.

Here's the full breakdown of the Denver rebate →
None of that applies to the $225, though. That one has no waitlist, no income test, and no round to get into. It's available today, anywhere in Colorado.

Quick answers

• Do I have to file anything at tax time? No. You sign the form at purchase, and you're finished.
• Does it apply to accessories, a second battery, or service? No — just the qualifying e-bike itself.
• Can I use it on a bike I order online? Only through a retailer registered with the state, and the bike has to be delivered ready to ride. A bike that shows up in a box doesn't qualify.
• I already bought an e-bike this year with the credit. Can I get it again? Not until January. It resets each calendar year.
• Is there an income limit? No. You're thinking of the Denver city rebate, which is a different program.
  
  

Ready to use it?
We're a registered Colorado retailer; we're on the current affidavit, and we handle the state side so you don't have to think about it.
See the full details on the Colorado E-Bike Tax Credit →
Or come see us: 1500 W. Littleton Blvd #110E, Littleton, CO 80120 · 720-737-9159​